Stock Analysis on Net
Stock Analysis on Net

Monsanto Co. (NYSE:MON)

This company has been moved to the archive! The financial data has not been updated since April 5, 2018.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Monsanto Co., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
U.S. federal 236 393 675 648 432 301
U.S. state 25 43 69 65 52 49
Outside United States 319 231 408 410 305 310
Current 580 667 1,152 1,123 789 660
U.S. federal 81 (109) (91) 41 159 252
U.S. state 4 (7) (2) (2) 1 15
Outside United States (39) 144 (195) (84) (34) (26)
Deferred 46 28 (288) (45) 126 241
Income tax provision from continuing operations 626 695 864 1,078 915 901

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Monsanto Co. current decreased from 2015 to 2016 and from 2016 to 2017.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Monsanto Co. deferred increased from 2015 to 2016 and from 2016 to 2017.
Income tax provision from continuing operations Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Monsanto Co. income tax provision from continuing operations decreased from 2015 to 2016 and from 2016 to 2017.

Effective Income Tax Rate (EITR)

Monsanto Co., effective income tax rate (EITR) reconciliation

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
U.S. federal statutory tax rate 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
Effective tax rate 21.69% 34.91% 27.33% 28.17% 26.68% 30.15%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Monsanto Co. effective tax rate increased from 2015 to 2016 but then decreased significantly from 2016 to 2017.

Components of Deferred Tax Assets and Liabilities

Monsanto Co., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
Net operating loss and other carryforwards 608 438 323 443 455 601
Employee fringe benefits 311 331 305 259 335 412
Royalties 220 189 154 129 95 106
Restructuring and impairment reserves 127 155 242 135 130 148
Inventories 93 91 173 106 137 132
Allowance for doubtful accounts 85 77 72 70 46 45
Environmental and litigation reserves 82 70 69 69 99 73
Intangibles — — — 74 71 122
Other 318 407 307 350 239 225
Deferred tax assets, gross 1,844 1,758 1,645 1,635 1,607 1,864
Valuation allowance (394) (346) (68) (63) (47) (50)
Deferred tax assets 1,450 1,412 1,577 1,572 1,560 1,814
Property, plant and equipment (667) (533) (539) (585) (571) (546)
Intangibles (411) (334) (361) (400) (403) (407)
Other — — — (81) (60) (119)
Deferred tax liabilities (1,078) (867) (900) (1,066) (1,034) (1,072)
Net deferred tax assets (liabilities) 372 545 677 506 526 742

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Monsanto Co. deferred tax assets, gross increased from 2015 to 2016 and from 2016 to 2017.
Deferred tax assets Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Monsanto Co. deferred tax assets decreased from 2015 to 2016 but then slightly increased from 2016 to 2017.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Monsanto Co. net deferred tax assets (liabilities) decreased from 2015 to 2016 and from 2016 to 2017.

Deferred Tax Assets and Liabilities, Classification

Monsanto Co., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
Current deferred tax assets — — 743 635 579 534
Noncurrent deferred tax assets 564 613 277 450 454 551
Current deferred tax liabilities — — 3 70 38 30
Noncurrent deferred tax liabilities 192 68 340 509 469 313

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Item Description The company
Noncurrent deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Monsanto Co. noncurrent deferred tax assets increased from 2015 to 2016 but then slightly decreased from 2016 to 2017.
Noncurrent deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Monsanto Co. noncurrent deferred tax liabilities decreased from 2015 to 2016 but then slightly increased from 2016 to 2017.

Adjustments to Financial Statements: Removal of Deferred Taxes

Monsanto Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
Adjustment to Current Assets
Current assets (as reported) 8,651 8,157 10,625 9,675 10,077 9,658
Less: Current deferred tax assets, net — — 743 635 579 534
Current assets (adjusted) 8,651 8,157 9,882 9,040 9,498 9,124
Adjustment to Total Assets
Total assets (as reported) 21,333 19,736 21,920 21,981 20,664 20,224
Less: Current deferred tax assets, net — — 743 635 579 534
Less: Noncurrent deferred tax assets, net 564 613 277 450 454 551
Total assets (adjusted) 20,769 19,123 20,900 20,896 19,631 19,139
Adjustment to Current Liabilities
Current liabilities (as reported) 6,398 6,729 5,177 5,112 4,336 4,221
Less: Current deferred tax liabilities, net — — 3 70 38 30
Current liabilities (adjusted) 6,398 6,729 5,174 5,042 4,298 4,191
Adjustment to Total Liabilities
Total liabilities (as reported) 14,875 15,191 14,915 14,067 7,936 8,188
Less: Current deferred tax liabilities, net — — 3 70 38 30
Less: Noncurrent deferred tax liabilities, net 192 68 340 509 469 313
Total liabilities (adjusted) 14,683 15,123 14,572 13,488 7,429 7,845
Adjustment to Total Monsanto Company Shareowners’ Equity
Total Monsanto Company shareowners’ equity (as reported) 6,438 4,534 6,990 7,875 12,559 11,833
Less: Net deferred tax assets (liabilities) 372 545 677 506 526 742
Total Monsanto Company shareowners’ equity (adjusted) 6,066 3,989 6,313 7,369 12,033 11,091
Adjustment to Net Income Attributable To Monsanto Company
Net income attributable to Monsanto Company (as reported) 2,260 1,336 2,314 2,740 2,482 2,045
Add: Deferred income tax expense (benefit) 46 28 (288) (45) 126 241
Net income attributable to Monsanto Company (adjusted) 2,306 1,364 2,026 2,695 2,608 2,286

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Monsanto Co., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Monsanto Co., adjusted financial ratios

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
Current Ratio
Reported current ratio 1.35 1.21 2.05 1.89 2.32 2.29
Adjusted current ratio 1.35 1.21 1.91 1.79 2.21 2.18
Net Profit Margin
Reported net profit margin 15.44% 9.89% 15.43% 17.28% 16.70% 15.14%
Adjusted net profit margin 15.75% 10.10% 13.51% 17.00% 17.55% 16.93%
Total Asset Turnover
Reported total asset turnover 0.69 0.68 0.68 0.72 0.72 0.67
Adjusted total asset turnover 0.70 0.71 0.72 0.76 0.76 0.71
Financial Leverage
Reported financial leverage 3.31 4.35 3.14 2.79 1.65 1.71
Adjusted financial leverage 3.42 4.79 3.31 2.84 1.63 1.73
Return on Equity (ROE)
Reported ROE 35.10% 29.47% 33.10% 34.79% 19.76% 17.28%
Adjusted ROE 38.02% 34.19% 32.09% 36.57% 21.67% 20.61%
Return on Assets (ROA)
Reported ROA 10.59% 6.77% 10.56% 12.47% 12.01% 10.11%
Adjusted ROA 11.10% 7.13% 9.69% 12.90% 13.29% 11.94%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

Financial ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Monsanto Co. adjusted current ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Monsanto Co. adjusted net profit margin ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Monsanto Co. adjusted total asset turnover ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Monsanto Co. adjusted financial leverage ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017 not reaching 2015 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Monsanto Co. adjusted ROE improved from 2015 to 2016 and from 2016 to 2017.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Monsanto Co. adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Monsanto Co., Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Current assets 8,651 8,157 10,625 9,675 10,077 9,658
Current liabilities 6,398 6,729 5,177 5,112 4,336 4,221
Liquidity Ratio
Current ratio1 1.35 1.21 2.05 1.89 2.32 2.29
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted current assets 8,651 8,157 9,882 9,040 9,498 9,124
Adjusted current liabilities 6,398 6,729 5,174 5,042 4,298 4,191
Liquidity Ratio
Adjusted current ratio2 1.35 1.21 1.91 1.79 2.21 2.18

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 8,651 ÷ 6,398 = 1.35

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 8,651 ÷ 6,398 = 1.35

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Monsanto Co. adjusted current ratio deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Adjusted Net Profit Margin

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Monsanto Company 2,260 1,336 2,314 2,740 2,482 2,045
Net sales 14,640 13,502 15,001 15,855 14,861 13,504
Profitability Ratio
Net profit margin1 15.44% 9.89% 15.43% 17.28% 16.70% 15.14%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Monsanto Company 2,306 1,364 2,026 2,695 2,608 2,286
Net sales 14,640 13,502 15,001 15,855 14,861 13,504
Profitability Ratio
Adjusted net profit margin2 15.75% 10.10% 13.51% 17.00% 17.55% 16.93%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

1 Net profit margin = 100 × Net income attributable to Monsanto Company ÷ Net sales
= 100 × 2,260 ÷ 14,640 = 15.44%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to Monsanto Company ÷ Net sales
= 100 × 2,306 ÷ 14,640 = 15.75%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Monsanto Co. adjusted net profit margin ratio deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.

Adjusted Total Asset Turnover

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net sales 14,640 13,502 15,001 15,855 14,861 13,504
Total assets 21,333 19,736 21,920 21,981 20,664 20,224
Activity Ratio
Total asset turnover1 0.69 0.68 0.68 0.72 0.72 0.67
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales 14,640 13,502 15,001 15,855 14,861 13,504
Adjusted total assets 20,769 19,123 20,900 20,896 19,631 19,139
Activity Ratio
Adjusted total asset turnover2 0.70 0.71 0.72 0.76 0.76 0.71

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 14,640 ÷ 21,333 = 0.69

2 Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 14,640 ÷ 20,769 = 0.70

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Monsanto Co. adjusted total asset turnover ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

Adjusted Financial Leverage

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Total assets 21,333 19,736 21,920 21,981 20,664 20,224
Total Monsanto Company shareowners’ equity 6,438 4,534 6,990 7,875 12,559 11,833
Solvency Ratio
Financial leverage1 3.31 4.35 3.14 2.79 1.65 1.71
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 20,769 19,123 20,900 20,896 19,631 19,139
Adjusted total Monsanto Company shareowners’ equity 6,066 3,989 6,313 7,369 12,033 11,091
Solvency Ratio
Adjusted financial leverage2 3.42 4.79 3.31 2.84 1.63 1.73

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

1 Financial leverage = Total assets ÷ Total Monsanto Company shareowners’ equity
= 21,333 ÷ 6,438 = 3.31

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Monsanto Company shareowners’ equity
= 20,769 ÷ 6,066 = 3.42

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Monsanto Co. adjusted financial leverage ratio increased from 2015 to 2016 but then slightly decreased from 2016 to 2017 not reaching 2015 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Monsanto Company 2,260 1,336 2,314 2,740 2,482 2,045
Total Monsanto Company shareowners’ equity 6,438 4,534 6,990 7,875 12,559 11,833
Profitability Ratio
ROE1 35.10% 29.47% 33.10% 34.79% 19.76% 17.28%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Monsanto Company 2,306 1,364 2,026 2,695 2,608 2,286
Adjusted total Monsanto Company shareowners’ equity 6,066 3,989 6,313 7,369 12,033 11,091
Profitability Ratio
Adjusted ROE2 38.02% 34.19% 32.09% 36.57% 21.67% 20.61%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

1 ROE = 100 × Net income attributable to Monsanto Company ÷ Total Monsanto Company shareowners’ equity
= 100 × 2,260 ÷ 6,438 = 35.10%

2 Adjusted ROE = 100 × Adjusted net income attributable to Monsanto Company ÷ Adjusted total Monsanto Company shareowners’ equity
= 100 × 2,306 ÷ 6,066 = 38.02%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Monsanto Co. adjusted ROE improved from 2015 to 2016 and from 2016 to 2017.

Adjusted Return on Assets (ROA)

Microsoft Excel
Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
As Reported
Selected Financial Data (US$ in millions)
Net income attributable to Monsanto Company 2,260 1,336 2,314 2,740 2,482 2,045
Total assets 21,333 19,736 21,920 21,981 20,664 20,224
Profitability Ratio
ROA1 10.59% 6.77% 10.56% 12.47% 12.01% 10.11%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income attributable to Monsanto Company 2,306 1,364 2,026 2,695 2,608 2,286
Adjusted total assets 20,769 19,123 20,900 20,896 19,631 19,139
Profitability Ratio
Adjusted ROA2 11.10% 7.13% 9.69% 12.90% 13.29% 11.94%

Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31).

2017 Calculations

1 ROA = 100 × Net income attributable to Monsanto Company ÷ Total assets
= 100 × 2,260 ÷ 21,333 = 10.59%

2 Adjusted ROA = 100 × Adjusted net income attributable to Monsanto Company ÷ Adjusted total assets
= 100 × 2,306 ÷ 20,769 = 11.10%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Monsanto Co. adjusted ROA deteriorated from 2015 to 2016 but then improved from 2016 to 2017 exceeding 2015 level.