Monsanto Co. (NYSE:MON)

Total Asset Turnover

The reported and adjusted total asset turnover ratios exhibit relative stability over the years, remaining within a narrow range approximately between 0.67 and 0.73. This consistency indicates that the company maintained a steady efficiency in utilizing its assets to generate sales during the period analyzed.

Current Ratio

Both reported and adjusted current ratios demonstrate a declining trend from 2012 to 2017. Initially strong, with values above 2.2, they dropped notably by 2016 to near or below 1.5, signaling a decrease in short-term liquidity and potentially tighter working capital management or increased current liabilities relative to current assets. Some recovery is seen in 2017 but remains below earlier levels.

Debt to Equity Ratio

The debt to equity ratio shows a pronounced increase from 2014 onwards, with a jump from around 0.17 in 2013 to above 1.0 in 2014 and peaking near 2.0 in 2016 before declining in 2017. This pattern suggests a significant rise in leverage, indicating heavier reliance on debt financing during that period, followed by some deleveraging in 2017.

Debt to Capital Ratio

Consistent with the debt to equity trend, the debt to capital ratio rises sharply starting 2014, moving from approximately 0.14 to a peak around 0.67 in 2016, then decreasing to about 0.55 in 2017. This confirms the increased proportion of debt in the company's capital structure during these years, with partial reduction afterward.

Financial Leverage

Reported and adjusted financial leverage ratios increase significantly from 2012 through 2016, reflecting growing use of debt financing to boost equity returns. The leverage peaks at over 4.3 reported and near 3.9 adjusted in 2016, before decreasing in 2017, indicating a conscious effort to lower financial risk after the peak leverage year.

Net Profit Margin

The net profit margin exhibits variability, initially increasing and peaking around 2014 with reported margins near 17%. However, a sharp decline occurs in 2016, with reported margins falling to under 10%, subsequently recovering in 2017. Adjusted margins show more fluctuation but generally follow a similar pattern, suggesting some volatility in profitability possibly due to operational or market factors.

Return on Equity (ROE)

ROE trends indicate substantial growth from 2012, reaching a high above 34% in 2014, then somewhat declining but remaining robust through 2017 with a reported peak near 35%. Adjusted ROE reflects greater volatility, indicating that while returns on equity were strong, certain adjustments reveal underlying fluctuations in profitability or capital structure impacts.

Return on Assets (ROA)

ROA shows a moderate upward movement from 2012 through 2014, followed by a decline in 2015 and 2016, and a rebound in 2017. The pattern suggests periods of efficient asset use interspersed with less favorable returns, aligning with the trends in profit margins and asset turnover. Adjusted ROA values indicate similar trends but with more pronounced dips, pointing to possible non-recurring items or asset base adjustments affecting net income.

Net Sales

Net sales demonstrate a moderate upward trend from 2012 through 2014, increasing from 13,504 million USD to 15,855 million USD. This is followed by a decline in 2015 and 2016, where net sales decreased to 15,001 million USD and further to 13,502 million USD, respectively. A recovery is noted in 2017 with net sales rising again to 14,640 million USD.

Total Assets

Total assets generally increased from 2012 to 2014, rising from 20,224 million USD to 21,981 million USD. The level remained relatively stable in 2015 but declined in 2016 to 19,736 million USD. A rebound was observed in 2017 when total assets increased to 21,333 million USD, nearly reaching previous peak levels.

Reported Total Asset Turnover

The reported total asset turnover ratio shows a slight improvement from 0.67 in 2012 to 0.72 in 2013 and 2014. Thereafter, it decreases to 0.68 in 2015 and remains stable at 0.68 in 2016, before a marginal increase to 0.69 in 2017. This indicates a slight reduction in efficiency in using assets to generate sales during 2015 and 2016, followed by a modest improvement in 2017.

Adjusted Net Sales

Adjusted net sales follow a similar pattern to net sales, increasing from 13,435 million USD in 2012 to 15,685 million USD in 2014. Afterwards, they decline in 2015 and 2016 to 14,933 million USD and 13,688 million USD, respectively, with an upturn to 14,878 million USD in 2017. This denotes consistent trends between reported and adjusted sales figures over the period.

Adjusted Total Assets

Adjusted total assets increase steadily from 19,664 million USD in 2012 to 21,619 million USD in 2014, then maintain a stable level in 2015 before declining in 2016 to 19,831 million USD. A recovery is noted in 2017 when adjusted total assets rise to 21,449 million USD, mirroring the movements observed in total assets.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio shows an improvement from 0.68 in 2012 to 0.73 in both 2013 and 2014. Subsequently, there is a decline to 0.69 in 2015, holding steady at that level in 2016 and 2017. This trend suggests slightly decreased asset efficiency in later years compared to the peak in 2013 and 2014.

The analysis of the annual financial data reveals several noteworthy trends in the liquidity position over the six-year period ending August 31, 2017.

Current Assets and Liabilities

Current assets exhibited moderate fluctuations, increasing from $9,658 million in 2012 to a peak of $10,625 million in 2015, followed by a notable decline to $8,157 million in 2016 before a slight recovery to $8,651 million in 2017. Conversely, current liabilities showed a consistent upward trajectory from $4,221 million in 2012 to $6,729 million in 2016, slightly decreasing to $6,398 million in 2017. This increase in liabilities notably outpaced the growth in assets during the latter years.

Reported Current Ratio

The reported current ratio reflected these shifts, beginning at a strong 2.29 in 2012 and maintaining above 2.0 through 2015. However, a sharp decline occurred in 2016 to 1.21, indicating a deterioration in short-term liquidity, with a minor improvement to 1.35 in 2017. This decline signals rising pressure on the company's ability to cover short-term obligations with current assets.

Adjusted Current Assets and Liabilities

Adjusted current assets and liabilities, which likely account for more refined asset or liability classifications, follow a similar pattern. Adjusted current assets peaked at $10,095 million in 2015 then dropped to $8,401 million in 2016 and slightly improved to $8,873 million in 2017. Adjusted current liabilities rose steadily from $3,795 million in 2012 to $5,934 million in 2016, with a small decrease to $5,634 million in 2017.

Adjusted Current Ratio

The adjusted current ratio maintained a healthier level compared to the reported ratio but still displayed a decline over time. Starting at 2.46 in 2012 and rising slightly to 2.57 in 2013, it decreased to 2.01 in 2014 and peaked again at 2.18 in 2015. Afterward, it sharply declined to 1.42 in 2016 and recovered moderately to 1.57 in 2017. This trend demonstrates weakening liquidity conditions, though less severe than implied by the reported ratio.

Overall, the data indicate a period of relatively stable liquidity through 2015, followed by a significant decline in 2016, with some modest improvement in 2017. The rise in current liabilities outpacing current assets, reflected in both reported and adjusted figures, suggests increasing short-term financial obligations that may have strained the company’s liquidity position during the latter years. The adjusted ratios imply that when refined adjustments are considered, liquidity remains somewhat stronger but still reflects a downward trend that warrants attention.

The financial data reveals distinct trends in the company's debt and equity levels over the period from 2012 to 2017. Throughout these years, total debt experienced a significant increase, particularly from 2013 to 2014, more than tripling from approximately 2,112 million US dollars to 7,761 million US dollars. This elevated debt level was maintained through 2015 and 2016, before declining somewhat in 2017.

Conversely, total shareowners’ equity demonstrated a declining trend throughout most of the period. Beginning at 11,833 million US dollars in 2012, equity decreased steadily, dropping below 5,000 million US dollars by 2016. There was a modest recovery observed in 2017, with equity increasing to 6,438 million US dollars.

Debt to Equity Ratios

The reported debt to equity ratio shows a gradual increase from 0.18 in 2012 to a peak of 1.99 in 2016, indicating that debt levels progressively outpaced equity. The ratio then declined to 1.26 in 2017, reflecting the combined effect of reduced debt and a rebound in equity. Adjusted figures follow a similar pattern, reinforcing these observations with slightly higher ratios overall.

Adjusted Figures

Adjusted total debt and equity values align closely with the reported figures, though adjusted debt is marginally higher each year, and adjusted equity exceeds reported equity by small margins. The adjusted debt to equity ratio peaks slightly lower than the reported ratio in 2016 and decreases more sharply afterward.

Overall, the data suggests that the company undertook a substantial increase in debt beginning in 2014, which contributed to a significant rise in financial leverage as reflected in the debt to equity ratios. The decline in equity during this period further accentuated the increase in leverage. The incremental improvement in equity and reduction in debt in 2017 led to a moderation in leverage, possibly indicating efforts to strengthen the balance sheet following a period of heightened borrowing.

Total Debt

The total debt exhibited a significant increase from 2012 to 2015, rising from approximately 2,074 million USD to a peak of 9,044 million USD. Following this peak, the debt level slightly decreased in 2016 and 2017 to 9,040 million USD and 8,124 million USD respectively, indicating some degree of deleveraging after the sharp rise.

Total Capital

Total capital showed a general upward trend from 2012 through 2015, increasing from 13,907 million USD to 16,034 million USD. However, there was a notable decline in 2016, dropping to 13,574 million USD, followed by a recovery in 2017 to 14,562 million USD. This pattern suggests some volatility in the capital base, with capital contraction occurring in 2016.

Reported Debt to Capital Ratio

The reported debt to capital ratio mirrored the movement in total debt and capital. Initially low in 2012 and 2013 at 0.15 and 0.14 respectively, the ratio increased sharply to 0.50 in 2014 and further rose to 0.67 in 2016. By 2017, the ratio decreased slightly to 0.56, signaling elevated leverage compared to the earlier years but some reduction after peaking in 2016.

Adjusted Total Debt

Adjusted total debt followed a similar pattern to reported total debt, rising significantly from 2,392 million USD in 2012 to a peak of 9,511 million USD in 2015. Subsequently, the adjusted debt stabilized around 9,504 million USD in 2016 before decreasing to 8,582 million USD in 2017, reflecting efforts to manage and reduce debt post-peak surge.

Adjusted Total Capital

Adjusted total capital increased steadily from 14,534 million USD in 2012 to a high of 16,686 million USD in 2015, then declined to 14,595 million USD in 2016. It rebounded to 15,777 million USD in 2017. This suggests fluctuations in the capital structure with a notable dip in 2016 followed by recovery.

Adjusted Debt to Capital Ratio

This ratio increased consistently from 0.16 in 2012 to 0.57 in 2015, reflecting rising leverage. It peaked slightly at 0.65 in 2016 before decreasing to 0.54 in 2017. The pattern indicates a significant increase in leverage over the period with some reduction in the final year analyzed, aligning with changes observed in both adjusted debt and capital.

Overall Analysis

The data demonstrates a pronounced increase in both reported and adjusted debt levels beginning in 2013, reaching their highest points between 2014 and 2016. This was accompanied by a rise in leverage ratios, indicating a shift toward greater financial leverage during this period. Capital levels experienced growth until 2015 but faced a downturn in 2016 with a partial recovery in 2017. The consistent patterns in both reported and adjusted figures suggest that financial restructuring or strategic borrowing significantly impacted the capital structure, with subsequent efforts to reduce leverage after 2016. The fluctuations in leverage ratios highlight a period of increased financial risk followed by some stabilization.

Total assets

The total assets exhibited a gradual increase from 20,224 million USD in 2012 to a peak of 21,981 million USD in 2014, followed by relative stability through 2015. However, there was a noticeable decline in 2016 to 19,736 million USD, before recovering somewhat in 2017 to 21,333 million USD.

Total Monsanto Company shareowners’ equity

Shareowners’ equity showed a declining trend over the period. Starting at 11,833 million USD in 2012, it increased slightly to 12,559 million USD in 2013, then sharply decreased from 2014 onwards, reaching a low of 4,534 million USD in 2016, before a moderate recovery to 6,438 million USD in 2017.

Reported financial leverage

The reported financial leverage ratio indicates a growing use of debt relative to equity. It decreased slightly between 2012 and 2013 from 1.71 to 1.65, then surged significantly to 2.79 in 2014 and continued increasing to 3.14 in 2015, peaking at 4.35 in 2016. In 2017, it declined to 3.31, suggesting some deleveraging but still remaining elevated compared to earlier years.

Adjusted total assets

The adjusted total assets follow a pattern similar to total assets. They increased from 19,664 million USD in 2012 to 21,619 million USD in 2014, then maintained near that level in 2015, before decreasing to 19,831 million USD in 2016 and rising again to 21,449 million USD in 2017.

Adjusted total shareowners’ equity

The adjusted equity figures mirror the trend seen in reported equity, increasing from 12,142 million USD in 2012 to 13,094 million USD in 2013, then dropping sharply through 2014 to 2016, bottoming at 5,091 million USD in 2016. There was some improvement in 2017, rising to 7,195 million USD, but still well below the earlier years.

Adjusted financial leverage

The adjusted financial leverage shows a consistent upward trajectory similar to the reported leverage. It decreased slightly from 1.62 in 2012 to 1.55 in 2013, followed by sharp increases to 2.66 in 2014 and 3.01 in 2015. It peaked at 3.90 in 2016 before declining to 2.98 in 2017. The overall trend points to a substantial increase in leverage over the period, with a slight reduction in the final year examined.

The financial data indicates fluctuating performance over the six-year period examined, with notable variations in income, sales, and profitability margins.

Net Income Attributable to Monsanto Company

Net income generally increased from 2045 million US dollars in 2012 to a peak of 2740 million in 2014, followed by a decline to 1336 million in 2016. Thereafter, the figure rebounded to 2260 million in 2017. This suggests a period of strong profit growth in the early years, a considerable drop mid-period, and a partial recovery by the end of the timeframe.

Net Sales

Net sales peaked at 15855 million in 2014, after which they declined steadily to 13502 million in 2016. In 2017, sales slightly increased to 14640 million. This trend corresponds with the movements in net income, indicating that sales volume or pricing power may have influenced profit levels.

Reported Net Profit Margin

The reported net profit margin followed a similar pattern, rising from 15.14% in 2012 to a high of 17.28% in 2014, before falling sharply to 9.89% in 2016. The margin improved again to 15.44% in 2017. This reflects the volatility seen in profitability, influenced by both operating performance and possibly cost factors.

Adjusted Net Income

Adjusted net income presents a more dramatic fluctuation than reported net income. It doubled from 1158 million in 2012 to 2388 million in 2013 and climbed to 2713 million in 2014. However, it drastically dropped to 444 million in 2015, then recovered moderately to 1559 million in 2016 and surged back to 2707 million in 2017. This sharp volatility may reflect one-time adjustments or unusual items impacting comparability across years.

Adjusted Net Sales

Adjusted net sales trends closely mirror net sales, with peak values in the mid-period (highest at 15685 million in 2014), a decline until 2016, and a rebound in 2017. This suggests consistency in revenue recognition adjustments without major distortions in underlying sales.

Adjusted Net Profit Margin

The adjusted profit margin also shows significant variation, increasing from 8.62% in 2012 to 17.3% in 2014, then dropping sharply to 2.97% in 2015. Subsequent years saw improvement to 11.39% in 2016 and a further rise to 18.19% in 2017. This pattern indicates notable effects from adjusted items on profitability, with 2015 being an atypical year that substantially suppressed reported profit relative to sales.

Overall, the data reveals a peak in both sales and profitability around 2014, followed by a period of decline and partial recovery by 2017. Adjusted figures highlight more pronounced swings, suggesting the influence of non-recurring events or accounting adjustments impacting net income and margins during the period analyzed. The patterns imply a company experiencing cyclical operational and financial challenges but showing resilience towards the end of the period.

The financial data reflect several notable trends over the six-year period. Net income attributable to the company showed an overall positive trajectory, increasing from $2,045 million in 2012 to a peak of $2,740 million in 2014, followed by a decline in 2016 to $1,336 million before rebounding to $2,260 million in 2017. This indicates some volatility, particularly steep declines in certain years.

Total shareowners’ equity followed a downward trend, starting at $11,833 million in 2012 and decreasing substantially to $4,534 million in 2016. There was partial recovery in 2017 to $6,438 million, but equity levels remained significantly lower than the initial years. This decline suggests challenges in retaining or generating shareholder value through equity.

Reported return on equity (ROE) displayed overall improvement, increasing from 17.28% in 2012 to a high of 35.1% in 2017 despite fluctuations, illustrating enhanced profitability relative to equity despite the declining equity base. This trend suggests that the company improved the efficiency of its equity utilization over time.

Adjusted net income exhibited high volatility, with a large increase to $2,388 million in 2013 and $2,713 million in 2014, then a sharp drop to $444 million in 2015 before recovering again to $2,707 million in 2017. These fluctuations imply that adjustments made to net income significantly affect the perceived profitability, pointing to possible non-recurring items or accounting adjustments in some years.

Similarly, adjusted total shareowners’ equity mirrored the pattern of total equity, declining from $12,142 million in 2012 to $5,091 million in 2016, with a subsequent partial increase to $7,195 million in 2017. This pattern supports the observation of weakening equity positions before a tentative recovery.

Adjusted ROE demonstrated pronounced variation, rising from 9.54% in 2012 to a peak of 33.39% in 2014, plummeting to 6.19% in 2015, and then climbing to 37.62% in 2017. The sharp decline in 2015 is notable and may reflect extraordinary circumstances impacting earnings or equity adjustments. The strong rebound in 2016 and 2017 indicates improving returns on adjusted equity.

Summary of key trends:

- Net income showed growth and volatility, with a notable dip in 2016 followed by recovery.

- Shareowners’ equity declined substantially over the period, with partial recovery in the final year.

- Reported ROE increased steadily, indicating improved profitability relative to equity.

- Adjusted net income and adjusted equity revealed significant fluctuations, pointing to potential non-recurring effects or adjustments in specific years.

- Adjusted ROE mirrored the pattern of adjusted income and equity, with notably low returns in 2015 and strong performance in later years.

Overall, the data portray a company experiencing pressure on its equity base while managing to enhance profitability and returns on equity, albeit with considerable earnings variability influenced by adjustments to reported income figures.

The financial data over the six-year period reveals notable fluctuations in the company's profitability, asset base, and returns.

Net Income Attributable to Monsanto Company

The net income generally increased from 2012 to 2014, rising from $2,045 million to $2,740 million. However, there was a significant decline in 2016 to $1,336 million, followed by a recovery in 2017 to $2,260 million. This indicates volatility in profitability, with a pronounced dip in the year ending August 31, 2016.

Total Assets

Total assets showed modest growth from 2012 to 2014, peaking at $21,981 million in 2014. Subsequently, assets slightly decreased to $19,736 million in 2016 before recovering to $21,333 million in 2017. This pattern suggests some asset base contraction during the mid-period, potentially linked to strategic divestments or asset impairments, then a rebound toward the end of the period.

Reported Return on Assets (ROA)

Reported ROA followed a pattern similar to net income, starting at 10.11% in 2012 and increasing to 12.47% in 2014. It then declined to 6.77% in 2016, reflecting decreased profitability relative to asset size, before improving again to 10.59% in 2017. This fluctuation confirms the impact of the mid-period downturn on efficiency in generating returns from assets.

Adjusted Net Income

The adjusted net income exhibits greater volatility compared to reported net income. It climbed sharply from $1,158 million in 2012 to $2,713 million in 2014, then plummeted to $444 million in 2015, indicating substantial adjustments or one-time charges affecting reported earnings. A partial recovery is observed in the following years, reaching $2,707 million in 2017, nearly matching the 2014 peak. This suggests periods of considerable non-recurring items influencing core profitability.

Adjusted Total Assets

Adjusted total assets followed a trend akin to reported total assets, increasing from $19,664 million in 2012 to $21,619 million in 2014, dropping to $19,831 million in 2016, and rising again to $21,449 million in 2017. The adjusted figures confirm the temporary contraction in asset base during the mid-period.

Adjusted Return on Assets (ROA)

Adjusted ROA varied more widely than reported ROA, beginning at 5.89% in 2012, peaking at 12.55% in 2014, then sharply declining to just 2.06% in 2015. It subsequently recovered to 12.62% by 2017. The low point in 2015 reflects significant adjustments that decreased the adjusted ROA below the reported measure, highlighting the effect of exceptional items on performance metrics.

Overall, the data indicates a period of growth and strong profitability up to 2014, followed by a marked decline in 2015 and 2016, affecting both net income and asset utilization. Recovery signs in 2017 suggest stabilization and improved financial performance. The differences between reported and adjusted figures highlight the impact of non-recurring factors during the period, which especially influenced earnings and return on assets.