The Mosaic Company (MOS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 591,600 | 1,530,900 | 4,975,900 | 2,422,600 | 301,700 |
| Interest expense | US$ in thousands | 230,000 | 189,000 | 168,800 | 194,300 | 214,100 |
| Interest coverage | 2.57 | 8.10 | 29.48 | 12.47 | 1.41 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $591,600K ÷ $230,000K
= 2.57
The interest coverage ratio for The Mosaic Company has shown significant fluctuations over the past five years. In December 2020, the interest coverage was 1.41, indicating that the company's operating income was only sufficient to cover its interest expense by a slim margin. However, there has been a noticeable improvement in subsequent years.
By December 2021, the interest coverage ratio surged to 12.47, suggesting a healthier financial position with ample operating income to cover interest costs. This trend continued into December 2022, with a substantial increase to 29.48, indicating a very strong ability to meet interest obligations.
However, the interest coverage dropped in December 2023 to 8.10, signaling a slight weakening in the company's ability to cover its interest expenses comfortably. By December 2024, the ratio further declined to 2.57, showing a significant decrease in the company's ability to cover interest payments from its operating income.
Overall, The Mosaic Company's interest coverage ratio has exhibited varying levels of financial health over the years, highlighting the importance of consistently monitoring and managing the company's interest obligations in relation to its operating income.
Peer comparison
Dec 31, 2024