Monsanto Co. (NYSE:MON)

Gross Profit Margin

The gross profit margin showed slight fluctuations over the observed period. Starting at 52.17% in 2012, it experienced a modest decline to 51.5% in 2013 before increasing to a peak of 54.54% in 2015. Subsequent periods saw a decline to 51.97% in 2016, followed by a recovery to 54.21% in 2017. Overall, the margin remained relatively stable with a tendency to hover around the low to mid-50% range.

Operating Profit Margin

The operating profit margin exhibited more variability. It increased from 23.31% in 2012 to a high of 25.7% in 2014, before declining sharply to 17.59% in 2016. The margin partially rebounded to 21.94% in 2017 but did not reach earlier peaks. This pattern indicates a period of operational efficiency gains followed by some challenges affecting operating income during the middle years.

Net Profit Margin

The net profit margin trend mirrored the operating margin closely, increasing from 15.14% in 2012 to a maximum of 17.28% in 2014, then declining notably to 9.89% in 2016. It recovered somewhat to 15.44% in 2017. The dip in net margin during 2016 suggests increased expenses or other adverse impacts on profitability beyond operating income.

Return on Equity (ROE)

Return on equity showed a strong upward trajectory, beginning at 17.28% in 2012 and nearly doubling to 34.79% by 2014. Although there was a slight decrease in 2015 and 2016 to around 29.47%, ROE surged again to 35.1% in 2017, marking the highest point in the series. This indicates an overall improvement in the company's effectiveness at generating profit from shareholders' equity despite intermediate fluctuations.

Return on Assets (ROA)

Return on assets followed a somewhat similar pattern to ROE but with lower values, reflecting asset base and profitability dynamics. ROA increased from 10.11% in 2012 to a peak of 12.47% in 2014, then declined to a low of 6.77% in 2016 before recovering to 10.59% in 2017. The decline in 2016 suggests less efficient use of assets during that year, possibly connected to the downturn observed in profit margins.

Gross Profit

The gross profit shows a generally upward trend from 2012 to 2017, starting at 7,045 million US dollars in 2012 and reaching 7,937 million US dollars in 2017. A peak occurs in 2014 at 8,574 million US dollars, followed by a decline in 2016 to 7,017 million US dollars before a recovery in 2017.

Net Sales

Net sales increased steadily from 13,504 million US dollars in 2012 to 15,855 million US dollars in 2014, indicating growth in revenue. However, there is a noticeable decline in 2015 and 2016, dropping to 13,502 million US dollars in 2016, before a moderate recovery to 14,640 million US dollars in 2017.

Gross Profit Margin

The gross profit margin fluctuates within a narrow range over the analyzed period. It starts at 52.17% in 2012, declines slightly to 51.5% in 2013, and then improves to above 54% in 2014 and 2015. The margin decreases again in 2016 to 51.97% but rebounds in 2017 to 54.21%, indicating some volatility but an overall maintenance of profitability relative to sales.

Summary of Trends

The financial data reveals a company experiencing growth in both gross profit and net sales through 2014, followed by a period of contraction in 2015 and 2016. Despite the fluctuations in net sales, the gross profit margin remains relatively stable, suggesting effective cost management or pricing strategies. The recovery in both net sales and gross profit in 2017 points to a positive turnaround after the dip in the middle years.

Over the analyzed period from 2012 to 2017, the company exhibited fluctuations in its key financial metrics, indicating variability in operational performance and profitability.

Income from operations

The income from operations showed an overall upward trend from 2012 to 2014, increasing from $3,148 million to $4,075 million. However, this was followed by a decline in 2015 and a more pronounced drop in 2016 to $2,375 million. The figure partially recovered in 2017, reaching $3,212 million, though it did not regain its previous peak.

Net sales

Net sales experienced steady growth from 2012 to 2014, rising from $13,504 million to $15,855 million. After peaking in 2014, net sales decreased slightly in 2015 and saw a more significant reduction in 2016 to $13,502 million. A recovery was observed in 2017 with net sales increasing to $14,640 million, but levels remained below the earlier peak.

Operating profit margin

The operating profit margin followed a similar trajectory to income from operations and net sales, improving from 23.31% in 2012 to a high of 25.7% in 2014. This margin contracted to 23.49% in 2015 and further decreased sharply to 17.59% in 2016, reflecting reduced profitability. By 2017, the margin improved to 21.94%, indicating a partial but incomplete recovery in operational efficiency.

Overall, the data reveal a peak in financial performance around 2014, followed by a period of decline through 2016, with a moderate recovery occurring in 2017. The decreases in both income and margin in 2016 suggest challenges impacting operational profitability despite some rebound in the following year.

Net Income

Net income attributable to Monsanto Company exhibited a generally fluctuating trend over the six-year period. Starting at $2,045 million in 2012, it increased to a peak of $2,740 million in 2014, declined notably to $1,336 million in 2016, and then recovered to $2,260 million in 2017. This pattern suggests volatility in earnings with significant variation in the middle years.

Net Sales

Net sales showed an overall upward trajectory initially, rising from $13,504 million in 2012 to a maximum of $15,855 million in 2014. After this peak, sales decreased to $13,502 million in 2016, before slightly recovering to $14,640 million in 2017. The sales trend mirrors the fluctuations seen in net income, with a period of growth followed by decline and partial rebound.

Net Profit Margin

The net profit margin maintained a generally stable position between approximately 15% and 17% from 2012 through 2015, peaking at 17.28% in 2014. However, there was a significant decline in 2016 to 9.89%, before improving to 15.44% in 2017. This sharp dip in 2016 indicates a reduction in profitability relative to sales, though the margin returned to previous levels in the following year.

Summary of Financial Trends

The data indicates that the company experienced strong growth in net income and sales up to 2014, supported by high profit margins. The subsequent decline in 2015 and 2016, especially the pronounced drop in net income and margin during 2016, suggests operational or market challenges in that period. The rebound in 2017 reflects a recovery phase, with both net income and profit margin approaching earlier higher levels, indicating a restoration of financial performance and efficiency.

The financial data reveals notable trends in net income, equity, and return on equity (ROE) over the six-year period ending in 2017.

Net Income Attributable to the Company

Net income exhibited variability during the period. It increased from US$2,045 million in 2012 to a peak of US$2,740 million in 2014. Subsequently, there was a decline to US$1,336 million by 2016, before recovering to US$2,260 million in 2017. This pattern indicates fluctuating profitability, with a significant dip in 2016 followed by a notable recovery the following year.

Total Shareowners’ Equity

The equity base experienced a steady decline across the period, starting from US$11,833 million in 2012 and decreasing markedly to US$4,534 million by 2016. There was a modest rebound to US$6,438 million in 2017, yet the equity remained substantially lower than the levels seen at the beginning of the period. This downward trend suggests potential equity shrinkage possibly due to share repurchases, dividend payments, or accumulated other comprehensive losses affecting the equity position.

Return on Equity (ROE)

ROE demonstrated a generally upward trajectory despite volatility in net income and equity. It rose from 17.28% in 2012 to a peak of 35.1% in 2017, with intermediate peaks in 2014 and 2015 at 34.79% and 33.1%, respectively. The increasing ROE, particularly in the context of declining equity, implies improved efficiency in generating profit from the equity base.

In summary, while net income fluctuated significantly, the substantial decrease in equity combined with the rising ROE points to a higher financial leverage or improved asset utilization. The decline and partial recovery in equity and net income warrant further analysis to understand the underlying factors affecting capital structure and earnings performance over the period.

Net Income Attributable to Monsanto Company

The net income exhibited a general upward trend from 2012 to 2014, increasing from 2,045 million US dollars to 2,740 million US dollars. However, this peak was followed by a decline in 2015 and a significant drop in 2016, reaching a low of 1,336 million US dollars. In 2017, the net income rebounded to 2,260 million US dollars, indicating a recovery but not quite reaching earlier peak levels.

Total Assets

Total assets showed moderate growth from 2012 through 2014, rising from 20,224 million US dollars to 21,981 million US dollars. In the subsequent years, total assets fluctuated slightly, with a decrease to 19,736 million US dollars in 2016, followed by a rebound to 21,333 million US dollars in 2017. Overall, asset levels remained relatively stable with minor volatility.

Return on Assets (ROA)

ROA followed a similar pattern to net income, rising from 10.11% in 2012 to a peak of 12.47% in 2014, then declining to 6.77% in 2016. The ROA recovered to 10.59% in 2017, indicating improved efficiency in generating profits from assets compared to the prior two years but still below the highest levels observed in 2013 and 2014.

General Observations

The financial data reflects a period of growth and strong profitability through 2014, followed by a slowdown and decreased profitability in 2015 and 2016. The decline in net income and ROA during these years suggests challenges that affected operational performance and asset utilization. The recovery in 2017 points to the company's ability to regain some profitability and asset efficiency, though net income had not returned to the peak levels previously achieved. Asset base changes indicate restrained investment or possible divestitures influencing overall asset size.