Debt to Equity
since 2005
Calculation
Monsanto Co., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Total Monsanto Company shareowners’ equity1 | |
|---|---|---|---|---|---|
| Aug 31, 2017 | 1.26 | = | 8,124) | ÷ | 6,438) |
| Aug 31, 2016 | 1.99 | = | 9,040) | ÷ | 4,534) |
| Aug 31, 2015 | 1.29 | = | 9,044) | ÷ | 6,990) |
| Aug 31, 2014 | 0.99 | = | 7,761) | ÷ | 7,875) |
| Aug 31, 2013 | 0.17 | = | 2,112) | ÷ | 12,559) |
| Aug 31, 2012 | 0.18 | = | 2,074) | ÷ | 11,833) |
| Aug 31, 2011 | 0.19 | = | 2,221) | ÷ | 11,545) |
| Aug 31, 2010 | 0.21 | = | 2,103) | ÷ | 10,099) |
| Aug 31, 2009 | 0.18 | = | 1,803) | ÷ | 10,056) |
| Aug 31, 2008 | 0.19 | = | 1,816) | ÷ | 9,374) |
| Aug 31, 2007 | 0.19 | = | 1,420) | ÷ | 7,503) |
| Aug 31, 2006 | 0.26 | = | 1,667) | ÷ | 6,525) |
| Aug 31, 2005 | 0.31 | = | 1,740) | ÷ | 5,613) |
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), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$ in millions
The financial trajectory between 2005 and 2017 is characterized by two distinct phases: a period of conservative capital management and equity growth, followed by a sharp shift toward significantly higher leverage starting in 2014.
- Debt Obligations
- Total debt remained relatively stable and low from 2005 through 2013, fluctuating within a range of 1,420 million to 2,221 million US dollars. However, a substantial inflection point occurred in 2014, where total debt surged from 2,112 million to 7,761 million US dollars. This upward trend peaked in 2015 and 2016 at approximately 9,044 million US dollars before experiencing a moderate decline to 8,124 million US dollars by August 31, 2017.
- Shareowners' Equity
- Equity exhibited consistent growth for nearly a decade, rising from 5,613 million US dollars in 2005 to a peak of 12,559 million US dollars in 2013. Following this peak, a rapid contraction was observed; equity fell sharply to 7,875 million US dollars in 2014 and reached a low of 4,534 million US dollars in 2016. A partial recovery occurred in 2017, with equity increasing to 6,438 million US dollars.
- Debt to Equity Ratio
- The debt to equity ratio reflects a profound transition in the company's capital structure. From 2005 to 2013, the ratio trended downward, moving from 0.31 to a low of 0.17, indicating a diminishing reliance on borrowed funds relative to equity. Beginning in 2014, this trend reversed aggressively; the ratio climbed to 0.99 in 2014 and accelerated to a peak of 1.99 in 2016. By 2017, the ratio moderated to 1.26, though it remained significantly higher than any level recorded in the preceding decade.
The overall analysis indicates a pivot from a low-leverage financial position to a high-leverage strategy. The simultaneous increase in total debt and the decrease in shareowners' equity between 2014 and 2016 resulted in a rapid escalation of the debt to equity ratio, signaling a fundamental change in the company's financing approach during the latter part of the observed period.
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Comparison to Competitors
Monsanto Co., debt to equity, long-term trends, comparison to competitors
| Monsanto Co. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Aug 31, 2017 | 1.26 | 0.00 | 0.31 |
| Aug 31, 2016 | 1.99 | 0.00 | 0.17 |
| Aug 31, 2015 | 1.29 | 0.00 | 0.10 |
| Aug 31, 2014 | 0.99 | 0.00 | 0.13 |
| Aug 31, 2013 | 0.17 | 0.00 | 0.12 |
| Aug 31, 2012 | 0.18 | 0.00 | 0.04 |
| Aug 31, 2011 | 0.19 | 0.00 | 0.07 |
| Aug 31, 2010 | 0.21 | 0.00 | 0.06 |
| Aug 31, 2009 | 0.18 | 0.00 | 0.09 |
| Aug 31, 2008 | 0.19 | 0.00 | 0.08 |
| Aug 31, 2007 | 0.19 | — | 0.08 |
| Aug 31, 2006 | 0.26 | — | 0.11 |
| Aug 31, 2005 | 0.31 | — | 0.14 |
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), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Durables & Apparel)
Monsanto Co., debt to equity, long-term trends, comparison to sector (consumer durables & apparel)
| Monsanto Co. | Consumer Durables & Apparel | |
|---|---|---|
| Aug 31, 2017 | 1.26 | 0.28 |
| Aug 31, 2016 | 1.99 | 0.15 |
| Aug 31, 2015 | 1.29 | 0.09 |
| Aug 31, 2014 | 0.99 | 0.12 |
| Aug 31, 2013 | 0.17 | 0.12 |
| Aug 31, 2012 | 0.18 | 0.04 |
| Aug 31, 2011 | 0.19 | 0.06 |
| Aug 31, 2010 | 0.21 | 0.06 |
| Aug 31, 2009 | 0.18 | 0.09 |
| Aug 31, 2008 | 0.19 | 0.08 |
| Aug 31, 2007 | 0.19 | 0.08 |
| Aug 31, 2006 | 0.26 | 0.11 |
| Aug 31, 2005 | 0.31 | 0.14 |
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), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Discretionary)
Monsanto Co., debt to equity, long-term trends, comparison to industry (consumer discretionary)
| Monsanto Co. | Consumer Discretionary | |
|---|---|---|
| Aug 31, 2017 | 1.26 | 2.55 |
| Aug 31, 2016 | 1.99 | 2.21 |
| Aug 31, 2015 | 1.29 | 1.88 |
| Aug 31, 2014 | 0.99 | 1.60 |
| Aug 31, 2013 | 0.17 | 1.25 |
| Aug 31, 2012 | 0.18 | 1.19 |
| Aug 31, 2011 | 0.19 | 1.09 |
| Aug 31, 2010 | 0.21 | 1.26 |
| Aug 31, 2009 | 0.18 | 2.58 |
| Aug 31, 2008 | 0.19 | 4.06 |
| Aug 31, 2007 | 0.19 | 2.62 |
| Aug 31, 2006 | 0.26 | 2.96 |
| Aug 31, 2005 | 0.31 | 2.35 |
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), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).