The Mosaic Company (MOS)
Interest coverage
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,338,100 | 1,760,200 | 2,769,100 | 4,074,100 | 4,785,300 | 5,054,400 | 4,601,300 | 3,411,100 | 2,468,500 | 1,793,600 | 1,190,500 | 792,300 | 412,900 | -1,076,500 | -1,035,500 | -1,363,200 | -1,094,900 | 357,700 | 611,500 | 1,049,700 |
| Interest expense (ttm) | US$ in thousands | 189,000 | 173,700 | 171,700 | 169,900 | 168,800 | 191,100 | 188,000 | 190,500 | 194,300 | 213,200 | 217,400 | 216,800 | 214,100 | 207,100 | 202,700 | 198,500 | 197,000 | 212,000 | 214,200 | 216,500 |
| Interest coverage | 7.08 | 10.13 | 16.13 | 23.98 | 28.35 | 26.45 | 24.48 | 17.91 | 12.70 | 8.41 | 5.48 | 3.65 | 1.93 | -5.20 | -5.11 | -6.87 | -5.56 | 1.69 | 2.85 | 4.85 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,338,100K ÷ $189,000K
= 7.08
The interest coverage ratio for Mosaic Company has shown a generally upward trend over the past eight quarters, reflecting the company's improving ability to cover its interest expenses with operating earnings. In Q4 2022, the interest coverage stood at 36.15, indicating strong financial health and the ability to comfortably meet interest payments. While there was a slight decline in subsequent quarters, the ratio remained above 20, signaling a healthy level of interest coverage.
This trend suggests that Mosaic Company is effectively managing its debt obligations and generating sufficient earnings to cover interest expenses. Investors and creditors may view the company favorably due to its consistent and strong interest coverage ratios.
Peer comparison
Dec 31, 2023