The Mosaic Company (MOS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.17 | 0.17 | 0.17 | 0.18 | 0.19 | 0.21 | 0.22 | 0.23 | 0.24 | 0.24 | 0.24 |
| Debt-to-capital ratio | 0.23 | 0.22 | 0.22 | 0.22 | 0.21 | 0.22 | 0.21 | 0.22 | 0.22 | 0.25 | 0.25 | 0.25 | 0.27 | 0.28 | 0.30 | 0.32 | 0.32 | 0.35 | 0.35 | 0.35 |
| Debt-to-equity ratio | 0.29 | 0.28 | 0.28 | 0.28 | 0.27 | 0.28 | 0.27 | 0.28 | 0.28 | 0.34 | 0.34 | 0.34 | 0.38 | 0.38 | 0.43 | 0.46 | 0.48 | 0.54 | 0.54 | 0.55 |
| Financial leverage ratio | 2.00 | 1.97 | 1.93 | 1.90 | 1.87 | 1.88 | 1.87 | 1.92 | 1.94 | 2.02 | 2.04 | 2.01 | 2.08 | 2.02 | 2.08 | 2.07 | 2.07 | 2.21 | 2.24 | 2.26 |
The solvency ratios of The Mosaic Company provide insight into the company's ability to meet its long-term financial obligations.
1. Debt-to-assets ratio: This ratio measures the percentage of the company's assets financed by debt. The ratio has decreased from 0.24 as of March 31, 2020, to 0.15 as of December 31, 2024, indicating a reduction in the proportion of assets financed by debt over the period, which is positive for the company's financial health.
2. Debt-to-capital ratio: This ratio indicates the proportion of the company's capital that comes from debt. The ratio has also shown a declining trend from 0.35 on March 31, 2020, to 0.23 on December 31, 2024. This reflects a decreasing reliance on debt financing in the company's capital structure.
3. Debt-to-equity ratio: This ratio compares the company's total debt to its total equity, reflecting the level of leverage. The ratio has decreased from 0.55 on March 31, 2020, to 0.29 on December 31, 2024, showing a significant reduction in financial leverage and a strengthening of the company's equity position.
4. Financial leverage ratio: This ratio measures the extent to which the company is using debt to fund its operations. The ratio has decreased from 2.26 on March 31, 2020, to 2.00 on December 31, 2024. A declining trend in this ratio indicates that the company is becoming less reliant on debt to finance its operations.
In summary, The Mosaic Company has shown a consistent improvement in its solvency ratios over the analyzed period, demonstrating a reduced dependency on debt financing and a stronger financial position. This trend indicates a positive outlook for the company's ability to meet its long-term financial obligations and sustain its operations in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio indicates the company's ability to meet its interest payment obligations with its operating income. A higher ratio suggests better coverage and indicates lower financial risk. Looking at The Mosaic Company's interest coverage ratio over time, we observe a fluctuating trend:
- The company's interest coverage ratio was negative in the early quarters of 2020, indicating that its operating income was insufficient to cover its interest expenses.
- However, starting from December 31, 2020, the interest coverage ratio turned positive, showing an improvement in the company's ability to cover its interest payments.
- The ratio continued to increase steadily through March 31, 2023, peaking at 28.35 on December 31, 2022, indicating a significant improvement in financial health and reduced risk of default.
- Subsequently, the interest coverage ratio started declining, falling to 2.70 on December 31, 2024. While still positive, this downward trend indicates that the company's ability to cover its interest expenses with operating income has weakened.
Overall, The Mosaic Company's interest coverage ratio has shown both positive and negative trends over the analyzed period. It is essential to monitor this ratio closely as a low interest coverage ratio could signal financial distress and an increased risk of default.