Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Capital Asset Pricing Model (CAPM)
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Monsanto Co., long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30).
The analysis of the quarterly financial ratios reveals notable trends in the efficiency measures over the observed periods.
- Net Fixed Asset Turnover
- This ratio exhibits a gradual decline from 3.22 in late 2012 to 2.39 by early 2018. The decrease is relatively steady without abrupt fluctuations, indicating a consistent reduction in the efficiency of fixed asset utilization over time. The decline from above 3.0 to below 2.5 suggests the company might be generating fewer sales per unit of fixed asset, potentially reflecting aging assets, underutilization, or changes in asset base relative to sales.
- Total Asset Turnover
- The total asset turnover ratio fluctuates within a narrow range between 0.62 and 0.72 throughout the period. While there are short-term variations, the overall level remains relatively stable, suggesting that the company maintains a consistent ability to generate revenue from its entire asset base. No strong upward or downward trend is discernible, indicating steady asset efficiency.
- Equity Turnover
- The equity turnover ratio shows considerable volatility and a distinct upward trend from 1.14 in late 2012 to a peak above 4.0 in early 2016. After this peak, it declines but remains elevated relative to the initial level, fluctuating between 1.88 and 3.3. The sharp increase followed by fluctuations could be indicative of significant changes in equity levels or sales patterns, possibly due to changes in capital structure, share repurchases, or varying profitability impacting equity. The particularly high spike in early 2016 may suggest a momentary improvement in equity efficiency or structural changes affecting equity.
In summary, while the company's fixed asset utilization efficiency has been decreasing, overall asset efficiency remains steady. Equity efficiency experiences significant variability and a notable increase mid-period, suggesting dynamic changes in either sales or equity financing. These patterns warrant closer examination of asset management and capital structure strategies to understand underlying causes.
Net Fixed Asset Turnover
Monsanto Co., net fixed asset turnover calculation (quarterly data)
| Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | Aug 31, 2013 | May 31, 2013 | Feb 28, 2013 | Nov 30, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Property, plant and equipment, net | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Net fixed asset turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | |||||||||||||||||||||||||||||
| Nike Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30).
1 Q2 2018 Calculation
Net fixed asset turnover
= (Net salesQ2 2018
+ Net salesQ1 2018
+ Net salesQ4 2017
+ Net salesQ3 2017)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a cyclic pattern with notable fluctuations across the reported quarters. Initially, there was a significant peak in the period ending February 2013, where net sales surged to 5,472 million US dollars from 2,939 million in the preceding quarter. This was followed by a decline in the subsequent two quarters, reaching a trough around August 2013 at 2,202 million US dollars. Similar cyclical variations persist throughout the timeline, with peaks and troughs occurring in alternating quarters. Despite these fluctuations, the overall trend in net sales does not demonstrate a consistent upward or downward trajectory but rather a recurrent seasonal pattern.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment showed a generally steady upward trend over the time period. Starting from 4,348 million US dollars in November 2012, this asset category gradually increased over each quarter, reaching 6,109 million US dollars by February 2018. This consistent growth suggests ongoing capital investment or asset acquisitions, contributing to the steady accumulation of fixed assets without marked periods of decline.
- Net Fixed Asset Turnover Ratio
- This ratio, which measures the efficiency of using net fixed assets to generate sales, showed a declining trend over the observed periods. Starting at 3.22 in November 2012, the ratio experienced minor fluctuations but predominantly decreased across the quarters, reaching a low of 2.39 by February 2018. The downward movement indicates a reduction in sales generated per unit of fixed asset, which could imply decreasing operational efficiency, increased asset base without proportional sales growth, or both.
- Overall Analysis
- The data reflects a scenario where fixed assets increased steadily while net sales successively fluctuated. The combination of steady growth in fixed assets alongside the declining net fixed asset turnover ratio suggests that the company may be allocating resources toward asset expansion, but this investment has not translated proportionally into higher sales productivity. The cyclical nature of net sales likely affects quarterly performance assessments and should be considered when planning operational strategies. Maintaining attention on improving asset utilization and managing the cyclicality of sales could be critical for enhancing financial performance going forward.
Total Asset Turnover
Monsanto Co., total asset turnover calculation (quarterly data)
| Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | Aug 31, 2013 | May 31, 2013 | Feb 28, 2013 | Nov 30, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Total asset turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | |||||||||||||||||||||||||||||
| Nike Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30).
1 Q2 2018 Calculation
Total asset turnover
= (Net salesQ2 2018
+ Net salesQ1 2018
+ Net salesQ4 2017
+ Net salesQ3 2017)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated considerable volatility over the observed periods. The data shows cyclical fluctuations with peaks generally occurring in the second quarter of each fiscal year, followed by noticeable declines in the subsequent quarters. For example, significant sales peaks were observed in February 2013 (US$5,472 million), February 2014 (US$5,832 million), and February 2015 (US$5,197 million). Despite these seasonal spikes, there is a tendency for net sales to decline sharply in the next quarter thereafter, reflecting potential seasonality or market demand fluctuations. The overall sales values remain mostly within a range of US$2,200 million to US$5,800 million, without a clear long-term upward or downward trend across the entire timeframe. The latter periods show a slight moderation in peaks, indicating potential stabilization or market saturation.
- Total Assets
- Total assets show a modest downward trend over the period with some fluctuations. Beginning at around US$22,537 million in November 2012, assets declined to approximately US$19,413 million by February 2016, marking the lowest point. After this trough, total assets gradually increased again to reach above US$22,000 million toward the end of the period, indicating possible asset acquisition or revaluation. Despite some short-term variability, such as slight increases in late 2013 and 2017, the general pattern suggests a contraction phase followed by recovery.
- Total Asset Turnover Ratio
- The total asset turnover ratio, which measures efficiency in using assets to generate sales, remained relatively stable with values ranging mostly between 0.62 and 0.72 throughout the entire period. Peaks in turnover ratios coincide with periods of higher net sales or reduced asset bases, for instance in August 2013 and August 2014 where the ratio reached 0.72. Conversely, slight decreases in turnover were noted towards the end of the timeline, returning to around 0.63-0.64. This indicates consistent asset utilization efficiency over time with limited volatility, signifying stable operational performance despite fluctuations in sales and asset levels.
- Summary of Trends
- In summary, net sales display a clear seasonal pattern with recurrent peaks in early fiscal quarters followed by drops, while total assets demonstrate a mid-term decrease followed by recovery. The steady asset turnover ratio suggests that the company maintained relatively consistent efficiency in leveraging its asset base to generate revenues. These observations imply that operational management of assets has been stable and efficient, even though external factors may have influenced sales variability and asset levels.
Equity Turnover
Monsanto Co., equity turnover calculation (quarterly data)
| Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | Aug 31, 2013 | May 31, 2013 | Feb 28, 2013 | Nov 30, 2012 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Total Monsanto Company shareowners’ equity | |||||||||||||||||||||||||||||
| Long-term Activity Ratio | |||||||||||||||||||||||||||||
| Equity turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | |||||||||||||||||||||||||||||
| lululemon athletica inc. | |||||||||||||||||||||||||||||
| Nike Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30).
1 Q2 2018 Calculation
Equity turnover
= (Net salesQ2 2018
+ Net salesQ1 2018
+ Net salesQ4 2017
+ Net salesQ3 2017)
÷ Total Monsanto Company shareowners’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibit a cyclical pattern with notable peaks typically occurring in the February and May periods of each fiscal year. Starting from US$ 2,939 million in November 2012, sales sharply increase to 5,472 million in February 2013, followed by decreases and recoveries throughout subsequent quarters. While the general seasonality pattern persists, there is some volatility in magnitude over the years. The highest sales figures are seen in early 2014 and early 2015, with values surpassing 5,000 million. From mid-2015 onward, sales demonstrate relatively stable levels with fluctuations generally ranging between approximately 2,600 million and 5,200 million, reflecting consistent demand but with limited growth on a year-over-year basis towards the end of the period.
- Total Monsanto Company Shareowners’ Equity
- Total equity exhibits variation over time with some distinct phases. Initially, equity increases steadily from 12,259 million in November 2012 to a peak of 14,662 million by May 2014. Subsequently, there is a notable decline through August 2014 and into 2015, reaching a low of 3,559 million in November 2015, indicating a significant reduction in equity possibly associated with extraordinary events, asset divestitures, or restructuring activities. After this trough, equity starts to recover gradually, increasing to 7,754 million by February 2018. Although this recovery trend is positive, equity levels at the end of the period remain below the earlier peak, suggesting a period of adjustment or capital restructuring within the company.
- Equity Turnover Ratio
- The equity turnover ratio reveals volatility and some structural changes during the period. The ratio begins near 1.1 in the initial quarters, indicating moderate efficiency in utilizing equity to generate sales. A sharp increase appears in late 2014 and early 2015, with values exceeding 2.0 and even reaching above 4.0 in November 2015, reflecting either improved sales relative to equity or diminished equity base. This spike correlates with the earlier detailed drop in equity, meaning that reduced equity inflated the turnover ratio significantly. Following the peak, the ratio decreases steadily but remains elevated compared to initial years, stabilizing around 2.0 by early 2018. This pattern suggests a structural shift in capital efficiency or capital base utilization over time, with the company operating more effectively or with leaner equity relative to sales in the latter years.
- Overall Insights
- The data reveals a cyclical sales pattern aligned with quarterly periods, demonstrating consistent demand but limited substantive growth in sales over the observed timeframe. The equity trend suggests significant corporate actions or external factors impacting shareholder equity, followed by a recovery phase, reflecting changes in the company's financial structure. The equity turnover ratio's volatility and sustained elevation indicate a transformation in how the company utilizes equity to generate revenues, potentially pointing to improved operational efficiency or a leaner equity base. Taken together, these factors depict a company navigating through structural shifts while maintaining relatively stable sales performance.