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.

Common-Size Income Statement 

Monsanto Co., common-size consolidated income statement

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12 months ended: Aug 31, 2017 Aug 31, 2016 Aug 31, 2015 Aug 31, 2014 Aug 31, 2013 Aug 31, 2012
Net sales 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -45.79 -48.03 -45.46 -45.92 -48.50 -47.83
Gross profit 54.21% 51.97% 54.54% 54.08% 51.50% 52.17%
Selling, general and administrative expenses -20.28 -20.98 -17.91 -17.50 -17.16 -17.70
Research and development expenses -10.98 -11.20 -10.53 -10.88 -10.32 -11.23
Restructuring charges 0.25 -2.20 -2.62 0.00 0.00 0.07
Pending Bayer transaction related costs -1.26 0.00 0.00 0.00 0.00 0.00
Operating expenses -32.27% -34.38% -31.06% -28.38% -27.47% -28.86%
Income from operations 21.94% 17.59% 23.49% 25.70% 24.02% 23.31%
Interest expense -3.09 -3.23 -2.89 -1.56 -1.16 -1.41
Interest income 0.52 0.55 0.70 0.64 0.62 0.57
Other income (expense), net 0.34 -0.16 -0.23 -0.64 -0.41 -0.34
Income from continuing operations before income taxes 19.71% 14.75% 21.07% 24.14% 23.07% 22.13%
Income tax provision -4.28 -5.15 -5.76 -6.80 -6.16 -6.67
Income from continuing operations including portion attributable to noncontrolling interest 15.44% 9.60% 15.31% 17.34% 16.92% 15.45%
Income on discontinued operations 0.09 0.13 0.19 0.08 0.07 0.04
Net income 15.53% 9.72% 15.50% 17.42% 16.99% 15.50%
Net (income) loss attributable to noncontrolling interest -0.09 0.17 -0.07 -0.14 -0.29 -0.36
Net income attributable to Monsanto Company 15.44% 9.89% 15.43% 17.28% 16.70% 15.14%

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).

The financial data reveals several notable trends spanning the six-year period ending August 31, 2017. The cost structure, profitability, expenses, and income dynamics exhibit fluctuations that merit detailed examination.

Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) as a percentage of net sales oscillated moderately, decreasing from -47.83% in 2012 to -45.79% in 2017, after reaching a peak at -48.5% in 2013 and -48.03% in 2016. Correspondingly, gross profit margins displayed an inverse pattern, improving from 52.17% in 2012 to 54.21% by 2017, despite intermittent declines such as the dip in 2016 to 51.97%. This trend indicates an overall slight improvement in production efficiency or pricing power over the period, although influenced by yearly volatility.
Operating Expenses
Operating expenses, inclusive of selling, general and administrative (SG&A) expenses, research and development (R&D) expenses, restructuring charges, and special transaction-related costs, showed an increasing trend. SG&A expenses rose notably from -17.7% in 2012 to a peak of -20.98% in 2016, slightly receding to -20.28% in 2017. R&D expenses remained relatively stable, fluctuating between approximately -10.32% and -11.23%, indicating a consistent commitment to innovation. Restructuring charges introduced volatility, with a notable negative impact around 2015 (-2.62%) and 2016 (-2.2%), followed by a small positive reversal in 2017. Additionally, in 2017, there was a distinct cost (-1.26%) linked to pending transactions with Bayer. As a result, total operating expenses increased from -28.86% in 2012 to -32.27% by 2017, reflecting heightened investments and transaction-related costs.
Operating Income
Income from operations as a percentage of net sales experienced a downward trend overall. It increased from 23.31% in 2012 to a high of 25.7% in 2014 but subsequently declined sharply to 17.59% in 2016 before recovering somewhat to 21.94% in 2017. This decline reflects the combined effect of rising operating expenses and restructuring-related impacts, partially offset by improvements in gross profit margins and operational efficiencies.
Interest and Other Income (Expense)
Interest expense increased significantly from -1.41% in 2012 to around -3.09% in 2017, indicating growing borrowing costs or increased debt levels over time. Interest income remained relatively stable, hovering around 0.5%-0.7%, providing some offset. Other income and expense had minor negative impacts initially but turned positive by 2017 (0.34%), suggesting improvements in non-operating financial items or one-time gains.
Pre-Tax and Net Income
Income from continuing operations before income taxes decreased overall from 22.13% in 2012 to 19.71% in 2017, with a pronounced dip to 14.75% in 2016. Income tax provision as a percentage of net sales consistently declined from -6.67% in 2012 to -4.28% in 2017, reflecting possible tax efficiency improvements. Net income aligned with trends in operating income and tax expenses, showing growth from 15.5% in 2012 to a peak near 17.42% in 2014 before falling sharply to 9.72% in 2016 and rebounding to 15.53% in 2017. Net income attributable to the company closely mirrored the net income trend.
Additional Observations
Income from discontinued operations was minimal throughout all years, implying limited impact on overall profitability. The net income attributable to noncontrolling interests was minor and did not present a significant influence on the overall financial performance.