The Mosaic Company (MOS)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 621,500 | 800,100 | 830,500 | 966,400 | 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 |
| Interest expense (ttm) | US$ in thousands | 230,000 | 191,000 | 193,400 | 192,100 | 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 |
| Interest coverage | 2.70 | 4.19 | 4.29 | 5.03 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $621,500K ÷ $230,000K
= 2.70
The interest coverage ratio of The Mosaic Company has exhibited significant fluctuations over the reported periods. It is calculated by dividing earnings before interest and taxes (EBIT) by interest expenses, and it measures the company's ability to meet its interest payment obligations out of its operating income.
Looking at the data provided, the interest coverage ratio was negative in the earlier periods, indicating that the company's EBIT was insufficient to cover its interest expenses. This situation improved over time, and as of December 31, 2021, the interest coverage ratio was 12.70, indicating that the company's operating income was 12.70 times greater than its interest expenses.
Subsequently, the interest coverage ratio continued to increase steadily until reaching a peak of 28.35 on December 31, 2022. This significant improvement suggests that The Mosaic Company had a strong ability to cover its interest obligations from its operating earnings during that period.
However, the interest coverage ratio started to decline from March 31, 2023, and continued to decrease in the following periods. It dropped to 2.70 by December 31, 2024, indicating a potential reduction in the company's ability to cover its interest expenses from its operating income.
Overall, the trend in The Mosaic Company's interest coverage ratio shows both positive and negative movements, reflecting fluctuations in the company's financial performance and its ability to service its debt obligations. Investors and creditors may closely monitor this ratio to assess the company's financial health and risk of default.
Peer comparison
Dec 31, 2024