Monsanto Co. (NYSE:MON)

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Segment Profit Margin: Seeds and Genomics

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).

Monsanto Co.; Seeds and Genomics; segment profit margin calculation

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
EBIT	2,910)	2,292)	2,206)	2,607)	2,412)	2,570)
Net sales	10,913)	9,988)	10,243)	10,740)	10,340)	9,789)
Segment Profitability Ratio
Segment profit margin¹	26.67%	22.95%	21.54%	24.27%	23.33%	26.25%

¹ 2017 Calculation
Segment profit margin = 100 × EBIT ÷ Net sales
= 100 × 2,910 ÷ 10,913 = 26.67%

The financial performance of the Seeds and Genomics segment between 2012 and 2017 is characterized by a period of margin compression followed by a robust recovery. While revenue and earnings experienced volatility throughout the mid-period, the segment concluded the observed timeframe with strong growth in both top-line sales and operating profitability.

Net Sales Trends: Revenue exhibited a fluctuating trajectory, increasing from 9,789 million in 2012 to a peak of 10,740 million in 2014. This was followed by a two-year contraction, with sales dipping to 10,243 million in 2015 and 9,988 million in 2016. A significant recovery occurred in 2017, with net sales reaching a period high of 10,913 million.
EBIT Performance: Earnings before interest and taxes showed instability, declining from 2,570 million in 2012 to a low of 2,206 million in 2015. Although a modest increase was observed in 2016, a sharp upward movement occurred in 2017, with EBIT rising to 2,910 million, representing the strongest operating result across the six-year span.
Segment Profit Margin Analysis: The profit margin followed a U-shaped trend, starting at 26.25% in 2012 and steadily declining to a trough of 21.54% in 2015. The fact that margins fell between 2012 and 2014 despite rising net sales suggests that operating expenses grew at a faster rate than revenue during that interval. This trend reversed after 2015, with the margin expanding to 22.95% in 2016 and reaching a peak of 26.67% in 2017, indicating improved operational efficiency and cost management.

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Segment Profit Margin: Agricultural Productivity

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).

Monsanto Co.; Agricultural Productivity; segment profit margin calculation

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
EBIT	353)	116)	1,294)	1,345)	1,048)	477)
Net sales	3,727)	3,514)	4,758)	5,115)	4,521)	3,715)
Segment Profitability Ratio
Segment profit margin¹	9.47%	3.30%	27.20%	26.30%	23.18%	12.84%

¹ 2017 Calculation
Segment profit margin = 100 × EBIT ÷ Net sales
= 100 × 353 ÷ 3,727 = 9.47%

The Agricultural Productivity segment experienced a period of significant growth and margin expansion between 2012 and 2015, followed by a sharp contraction in 2016 and a partial recovery in 2017.

Net Sales Performance: Net sales exhibited a steady upward trajectory from 2012 to 2014, peaking at 5,115 million US dollars. This growth phase was followed by a gradual decline in 2015 and a substantial contraction in 2016, where sales dropped to 3,514 million US dollars. A modest recovery was noted by August 31, 2017, with sales increasing to 3,727 million US dollars.
EBIT Trends: Earnings Before Interest and Taxes (EBIT) grew aggressively from 477 million US dollars in 2012 to a peak of 1,345 million US dollars in 2014. While EBIT remained relatively stable in 2015 at 1,294 million US dollars, the segment suffered a severe decline in 2016, with EBIT falling to 116 million US dollars. The 2017 figures indicate a rebound, with EBIT rising to 353 million US dollars.
Segment Profit Margin Analysis: The segment profit margin demonstrated strong operational leverage from 2012 to 2015, increasing consistently from 12.84% to a peak of 27.20%. This period of efficiency was abruptly reversed in 2016, when the margin collapsed to 3.30%, indicating that the decline in EBIT was far more severe than the decline in net sales. By 2017, the profit margin improved to 9.47%, although it remained significantly below the levels achieved during the 2013-2015 expansion.

Overall, the data reveals a cyclical pattern characterized by a four-year expansion of profitability and scale, a critical downturn in 2016, and the beginning of a stabilization phase in 2017.

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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).

Monsanto Co., ROA by reportable segment

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Seeds and Genomics	17.35%	14.53%	12.73%	14.81%	14.85%	16.12%
Agricultural Productivity	7.73%	2.93%	28.19%	30.69%	23.72%	11.14%

The analysis of segment return on assets (ROA) reveals distinct performance trajectories for the Seeds and Genomics and Agricultural Productivity divisions from 2012 through 2017. The former demonstrates relative stability and long-term resilience, while the latter is characterized by high volatility and a significant performance shock in the latter part of the period.

Seeds and Genomics: ROA for this segment remained consistently positive, fluctuating within a relatively narrow range. After a gradual decline from 16.12% in 2012 to a minimum of 12.73% in 2015, the segment experienced a steady recovery. By August 31, 2017, the ROA reached its period peak of 17.35%, indicating an improved efficiency in asset utilization over the final two years of the analyzed timeframe.
Agricultural Productivity: This segment exhibited a highly volatile ROA profile. An initial period of rapid expansion saw returns climb from 11.14% in 2012 to a peak of 30.69% in 2014. This elevated level of profitability was largely maintained in 2015 at 28.19% before a precipitous decline occurred in 2016, where ROA dropped to 2.93%. Although a partial recovery to 7.73% was recorded in 2017, the segment ended the period significantly below its historical peak.

The divergence in performance highlights a contrast between the steady asset returns of the Seeds and Genomics segment and the high variance observed in the Agricultural Productivity segment. The sharp contraction recorded in 2016 represents a critical inflection point for the Agricultural Productivity division, shifting it from the highest-performing segment to the lowest-performing segment during that specific fiscal year.

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Segment ROA: Seeds and Genomics

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).

Monsanto Co.; Seeds and Genomics; segment ROA calculation

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
EBIT	2,910)	2,292)	2,206)	2,607)	2,412)	2,570)
Total assets	16,768)	15,772)	17,330)	17,598)	16,246)	15,944)
Segment Profitability Ratio
Segment ROA¹	17.35%	14.53%	12.73%	14.81%	14.85%	16.12%

¹ 2017 Calculation
Segment ROA = 100 × EBIT ÷ Total assets
= 100 × 2,910 ÷ 16,768 = 17.35%

The financial performance of the Seeds and Genomics segment between 2012 and 2017 is characterized by a period of moderate volatility in profitability, culminating in a significant recovery by the end of the analyzed period. While assets remained relatively stable, the return on assets experienced a notable dip mid-period before reaching a peak in 2017.

Earnings Before Interest and Taxes (EBIT): EBIT demonstrated a fluctuating trend over the six-year period. After an initial decline in 2013, earnings recovered in 2014 to 2,607 million US$, followed by a sharp contraction to a period low of 2,206 million US$ in 2015. A strong recovery trend followed, with EBIT rising to 2,910 million US$ by August 31, 2017, representing the highest earning level in the observed timeframe.
Total Asset Base: The asset base for the segment showed limited volatility, generally oscillating between 15.7 billion and 17.6 billion US$. Assets peaked in 2014 at 17,598 million US$ and reached a minimum in 2016 at 15,772 million US$. The stability of the asset base suggests that changes in profitability were driven primarily by operational performance rather than significant expansions or contractions of the capital base.
Segment Return on Assets (ROA): The Segment ROA closely mirrored the trends seen in EBIT. A downward trajectory is observed from 2012 (16.12%) through 2015, where the ratio reached its lowest point of 12.73%. This decline was particularly pronounced in 2015, where the combination of falling EBIT and a relatively high asset base compressed returns. However, a robust reversal occurred in 2016 and 2017, with the ROA climbing to 17.35% by the end of the period, indicating improved efficiency in generating profits from the segment's assets.

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Segment ROA: Agricultural Productivity

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).

Monsanto Co.; Agricultural Productivity; segment ROA calculation

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
EBIT	353)	116)	1,294)	1,345)	1,048)	477)
Total assets	4,565)	3,964)	4,590)	4,383)	4,418)	4,280)
Segment Profitability Ratio
Segment ROA¹	7.73%	2.93%	28.19%	30.69%	23.72%	11.14%

¹ 2017 Calculation
Segment ROA = 100 × EBIT ÷ Total assets
= 100 × 353 ÷ 4,565 = 7.73%

The Agricultural Productivity segment exhibited significant volatility in profitability and asset efficiency between 2012 and 2017. The period is characterized by a period of rapid growth, a severe contraction in 2016, and a partial recovery by the end of the observed timeframe.

Earnings Before Interest and Taxes (EBIT) Performance: EBIT experienced a substantial upward trajectory from 2012 to 2014, increasing from 477 million USD to a peak of 1,345 million USD. A slight moderation occurred in 2015, with EBIT reaching 1,294 million USD. This was followed by a precipitous decline in 2016, where earnings fell to 116 million USD, before rebounding to 353 million USD in 2017.
Asset Base Trends: Total assets remained relatively stable, fluctuating between a low of 3,964 million USD in 2016 and a high of 4,590 million USD in 2015. The asset base grew modestly from 2012 through 2015, contracted in 2016, and returned to 4,565 million USD by 2017.
Segment Return on Assets (ROA): The Segment ROA closely mirrored the EBIT trends, reflecting a sharp increase in operational efficiency from 11.14% in 2012 to a peak of 30.69% in 2014. Performance remained robust at 28.19% in 2015 but suffered a collapse to 2.93% in 2016. A modest recovery was recorded in 2017, with the ROA rising to 7.73%, although this figure remained well below the historical peaks achieved in the 2013-2015 period.

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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).

Monsanto Co., asset turnover by reportable segment

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Seeds and Genomics	0.65	0.63	0.59	0.61	0.64	0.61
Agricultural Productivity	0.82	0.89	1.04	1.17	1.02	0.87

The asset turnover ratios for the reportable segments exhibit divergent trends between 2012 and 2017, reflecting varying levels of asset utilization efficiency across the two business units.

Seeds and Genomics: The asset turnover for this segment remained relatively stable over the six-year period. The ratio fluctuated within a narrow range, starting at 0.61 in 2012, dipping to a minimum of 0.59 in 2015, and recovering to a period high of 0.65 by 2017. This consistency suggests a steady capacity to generate revenue from the allocated asset base.
Agricultural Productivity: This segment demonstrated significant volatility in asset utilization. An initial upward trajectory was observed from 2012 to 2014, during which the ratio increased from 0.87 to a peak of 1.17. Following this peak, a consistent downward trend occurred, with the ratio falling to 1.04 in 2015, 0.89 in 2016, and concluding at 0.82 in 2017. This pattern indicates a period of heightened operational efficiency followed by a gradual decline in revenue generation relative to assets.
Comparative Segment Performance: Agricultural Productivity maintained a higher turnover ratio than Seeds and Genomics throughout the entire analyzed period. However, the performance gap between the two segments narrowed significantly over time. While the disparity was most pronounced in 2014, the convergence observed by 2017 results from the simultaneous decline in the Agricultural Productivity ratio and the incremental improvement in the Seeds and Genomics ratio.

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Segment Asset Turnover: Seeds and Genomics

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).

Monsanto Co.; Seeds and Genomics; segment asset turnover calculation

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
Net sales	10,913)	9,988)	10,243)	10,740)	10,340)	9,789)
Total assets	16,768)	15,772)	17,330)	17,598)	16,246)	15,944)
Segment Activity Ratio
Segment asset turnover¹	0.65	0.63	0.59	0.61	0.64	0.61

¹ 2017 Calculation
Segment asset turnover = Net sales ÷ Total assets
= 10,913 ÷ 16,768 = 0.65

The Seeds and Genomics segment maintained a relatively stable level of asset efficiency between 2012 and 2017, with the segment asset turnover ratio fluctuating within a narrow band of 0.59 to 0.65. While net sales and total assets experienced various cycles of growth and contraction, the ratio of sales generated per dollar of assets remained consistent, indicating a steady relationship between the segment's resource base and its revenue-generating capacity.

Net Sales Trends: Revenue exhibited a general upward trajectory with a period of volatility. Sales grew from 9,789 million USD in 2012 to a peak of 10,740 million USD in 2014. A subsequent decline occurred through 2016, where sales dipped to 9,988 million USD, before recovering strongly to reach a period high of 10,913 million USD by August 31, 2017.
Asset Base Fluctuations: Total assets followed a similar pattern to sales, increasing from 15,944 million USD in 2012 to a peak of 17,598 million USD in 2014. A reduction in the asset base was observed in 2015 and 2016, reaching a low of 15,772 million USD, followed by an increase to 16,768 million USD in 2017.
Asset Turnover Efficiency: The asset turnover ratio peaked in 2017 at 0.65, suggesting the highest level of operational efficiency during the observed period. The lowest efficiency was recorded in 2015 at 0.59, a result of declining net sales coinciding with a relatively high asset base. The subsequent improvement in 2016 and 2017 indicates a successful alignment of asset utilization with revenue growth, as the ratio climbed steadily back to 0.65.

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Segment Asset Turnover: Agricultural Productivity

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).

Monsanto Co.; Agricultural Productivity; segment asset turnover calculation

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
Net sales	3,727)	3,514)	4,758)	5,115)	4,521)	3,715)
Total assets	4,565)	3,964)	4,590)	4,383)	4,418)	4,280)
Segment Activity Ratio
Segment asset turnover¹	0.82	0.89	1.04	1.17	1.02	0.87

¹ 2017 Calculation
Segment asset turnover = Net sales ÷ Total assets
= 3,727 ÷ 4,565 = 0.82

The Agricultural Productivity segment exhibited a period of increasing operational efficiency followed by a steady decline in asset utilization between 2012 and 2017.

Revenue Performance: Net sales showed a significant upward trajectory in the early part of the period, rising from US$ 3,715 million in 2012 to a peak of US$ 5,115 million in 2014. This was followed by a period of contraction, with sales falling to US$ 3,514 million in 2016, before a slight recovery to US$ 3,727 million in 2017.
Asset Base Trends: Total assets remained relatively stable compared to the volatility of sales. Assets fluctuated within a range of US$ 3,964 million to US$ 4,590 million. Notably, in 2017, total assets increased to US$ 4,565 million despite the previous year's decline in revenue, contributing to a lower efficiency ratio.
Asset Turnover Efficiency: The segment asset turnover ratio peaked in 2014 at 1.17, indicating the most efficient use of assets to generate sales. Following this peak, the ratio entered a consistent downward trend, falling to 1.04 in 2015, 0.89 in 2016, and reaching a period low of 0.82 in 2017. The decline in the turnover ratio suggests that the segment's ability to generate revenue from its asset base diminished over the final three years of the observed period.

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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).

Monsanto Co., capital expenditures to depreciation by reportable segment

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Seeds and Genomics	1.29	1.23	1.30	1.46	1.25	0.97
Agricultural Productivity	2.96	1.46	1.58	1.41	1.02	1.37

An examination of the capital expenditure to depreciation ratios across reportable segments indicates a general trend of asset base expansion from 2012 through 2017. Both the Seeds and Genomics and Agricultural Productivity segments maintained ratios predominantly above 1.0, signaling that capital investments generally exceeded the depreciation of existing assets over the analyzed period.

Seeds and Genomics: This segment experienced an initial increase in its investment-to-depreciation ratio, rising from 0.97 in 2012 to a peak of 1.46 in 2014. Following this peak, the ratio entered a period of relative stability, fluctuating between 1.23 and 1.29 from 2015 to 2017. This pattern suggests a transition from an initial growth phase to a more consistent level of capital reinvestment.
Agricultural Productivity: The ratio for this segment exhibited greater volatility and a more pronounced upward trajectory. After a decrease to 1.02 in 2013, the ratio climbed steadily, reaching 1.58 in 2015. A significant acceleration in capital spending relative to depreciation occurred in 2017, where the ratio surged to 2.96. This sharp increase indicates a substantial expansion of the segment's fixed asset base in the final year of the period.

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Segment Capital Expenditures to Depreciation: Seeds and Genomics

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).

Monsanto Co.; Seeds and Genomics; segment capital expenditures to depreciation calculation

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
Property, plant and equipment purchases	757)	727)	762)	831)	619)	493)
Depreciation and amortization expense	585)	593)	586)	568)	495)	510)
Segment Financial Ratio
Segment capital expenditures to depreciation¹	1.29	1.23	1.30	1.46	1.25	0.97

¹ 2017 Calculation
Segment capital expenditures to depreciation = Property, plant and equipment purchases ÷ Depreciation and amortization expense
= 757 ÷ 585 = 1.29

The Seeds and Genomics segment demonstrated a notable shift in investment strategy between 2012 and 2017, moving from a state of asset replacement to a period of active capacity expansion and subsequent stabilization.

Property, Plant, and Equipment Investment: Expenditures on property, plant, and equipment showed a strong upward trajectory in the early part of the period, rising from 493 million US dollars in 2012 to a peak of 831 million US dollars in 2014. Following this peak, annual investments moderated, fluctuating between 727 million and 757 million US dollars from 2015 through 2017.
Depreciation and Amortization Trends: Depreciation and amortization expenses remained relatively stable throughout the observed timeframe. After a slight decrease in 2013 to 495 million US dollars, the expense trended gradually upward, peaking at 593 million US dollars in 2016 before settling at 585 million US dollars in 2017.
Capital Expenditures to Depreciation Ratio: The ratio of capital expenditures to depreciation indicates a strategic shift in asset management. In 2012, the ratio stood at 0.97, suggesting that depreciation expenses slightly exceeded new investments. However, from 2013 onward, the ratio remained consistently above 1.0, reaching a high of 1.46 in 2014. This sustained ratio above unity indicates that the segment invested in new assets at a rate faster than the depreciation of existing ones, reflecting a period of growth and modernization of the asset base.

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Segment Capital Expenditures to Depreciation: Agricultural Productivity

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).

Monsanto Co.; Agricultural Productivity; segment capital expenditures to depreciation calculation

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Selected Financial Data (US$ in millions)
Property, plant and equipment purchases	483)	196)	205)	174)	122)	153)
Depreciation and amortization expense	163)	134)	130)	123)	120)	112)
Segment Financial Ratio
Segment capital expenditures to depreciation¹	2.96	1.46	1.58	1.41	1.02	1.37

¹ 2017 Calculation
Segment capital expenditures to depreciation = Property, plant and equipment purchases ÷ Depreciation and amortization expense
= 483 ÷ 163 = 2.96

The Agricultural Productivity segment exhibits a consistent pattern of investing in property, plant, and equipment (PPE) at levels exceeding annual depreciation, indicating a long-term strategy of asset expansion rather than mere maintenance. While investment levels remained relatively stable for several years, the period concluded with a significant acceleration in capital deployment.

Property, Plant, and Equipment Purchases: Capital expenditures fluctuated between 2012 and 2016, reaching a low of 122 million US dollars in 2013 and a peak of 205 million US dollars in 2015. A substantial increase is observed in 2017, where PPE purchases rose to 483 million US dollars, marking a significant deviation from previous spending patterns.
Depreciation and Amortization Trends: Depreciation and amortization expenses followed a steady upward trajectory, growing from 112 million US dollars in 2012 to 163 million US dollars in 2017. This incremental growth suggests a gradual and continuous increase in the total volume of depreciable assets within the segment.
Capital Expenditures to Depreciation Ratio: The ratio remained above 1.0 throughout the entire period, confirming that reinvestment consistently outpaced asset wear. The ratio reached its lowest point in 2013 at 1.02, suggesting a phase of minimal growth where capital spending nearly equaled depreciation. A sharp increase occurred in 2017, with the ratio rising to 2.96, reflecting an aggressive expansion of the segment's infrastructure or technological capabilities.

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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).

Monsanto Co., net sales by reportable segment

US$ in millions

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Seeds and Genomics	10,913)	9,988)	10,243)	10,740)	10,340)	9,789)
Agricultural Productivity	3,727)	3,514)	4,758)	5,115)	4,521)	3,715)
Total	14,640)	13,502)	15,001)	15,855)	14,861)	13,504)

Total net sales exhibited a cyclical trend between 2012 and 2017, characterized by a period of growth peaking in 2014 followed by a contraction and a subsequent partial recovery. Aggregate revenue rose from US$ 13,504 million in 2012 to a peak of US$ 15,855 million in 2014, before declining to US$ 13,502 million in 2016. The period concluded with a rebound to US$ 14,640 million in 2017.

Seeds and Genomics Performance: This segment acted as the primary revenue driver and demonstrated relative stability compared to other business lines. Net sales increased from US$ 9,789 million in 2012 to US$ 10,740 million in 2014. Although a slight decline occurred between 2015 and 2016, the segment reached its highest valuation of US$ 10,913 million in 2017, indicating a resilient long-term growth trajectory.
Agricultural Productivity Performance: The Agricultural Productivity segment showed significant volatility over the analyzed period. Initial strong growth saw sales rise from US$ 3,715 million in 2012 to a peak of US$ 5,115 million in 2014. This was followed by a sharp downward trend, with sales dropping to US$ 3,514 million by 2016, representing a substantial correction from the 2014 peak. A modest recovery was observed in 2017, with sales increasing to US$ 3,727 million.
Segment Contribution and Variance: The volatility in total company net sales was more closely correlated with the fluctuations in the Agricultural Productivity segment than those in Seeds and Genomics. The decline in total revenue between 2014 and 2016 was primarily driven by the sharp reduction in Agricultural Productivity sales, whereas the Seeds and Genomics segment provided a stabilizing effect on the overall financial performance.

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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).

Monsanto Co., ebit by reportable segment

US$ in millions

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Seeds and Genomics	2,910)	2,292)	2,206)	2,607)	2,412)	2,570)
Agricultural Productivity	353)	116)	1,294)	1,345)	1,048)	477)
Total	3,263)	2,408)	3,500)	3,952)	3,460)	3,047)

Total EBIT exhibited a growth trend from 2012 to 2014, peaking at US$ 3,952 million before experiencing a significant decline that culminated in a trough of US$ 2,408 million in 2016. A recovery was observed in 2017, with total EBIT rising to US$ 3,263 million.

Seeds and Genomics Performance: This segment served as the primary driver of overall profitability throughout the period. While performance was volatile—dipping in 2013 and 2015—it demonstrated resilience, concluding the period at its highest level of US$ 2,910 million in 2017. The segment's ability to maintain substantial EBIT values provided a necessary buffer against fluctuations in other business areas.
Agricultural Productivity Performance: A pattern of rapid expansion followed by a sharp contraction is evident in this segment. EBIT grew substantially from US$ 477 million in 2012 to a peak of US$ 1,345 million in 2014. However, a severe downturn occurred in 2016, where EBIT collapsed to US$ 116 million. Although a moderate recovery to US$ 353 million was recorded in 2017, the segment failed to return to its 2013-2015 performance levels.
Segmental Contribution and Volatility: The variance in total EBIT is closely correlated with the volatility of the Agricultural Productivity segment. The overall peak in 2014 was driven by the simultaneous strength of both segments. Conversely, the total EBIT decline in 2016 was primarily attributable to the precipitous drop in Agricultural Productivity, as the Seeds and Genomics segment remained relatively stable during that same interval.

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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).

Monsanto Co., depreciation and amortization expense by reportable segment

US$ in millions

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Seeds and Genomics	585)	593)	586)	568)	495)	510)
Agricultural Productivity	163)	134)	130)	123)	120)	112)
Total	748)	727)	716)	691)	615)	622)

Total depreciation and amortization expenses exhibited a general upward trajectory over the six-year period from 2012 to 2017. After a marginal decline in 2013, total expenses grew consistently each year, rising from US$ 615 million in 2013 to US$ 748 million by the end of the 2017 fiscal year, representing an overall increase of approximately 20% from the initial 2012 baseline.

Seeds and Genomics Segment Trends: This segment constitutes the vast majority of the total depreciation and amortization burden. Expenses within this segment grew from US$ 510 million in 2012 to a peak of US$ 593 million in 2016, before experiencing a slight reduction to US$ 585 million in 2017. The volatility in this segment mirrored the total expense trend, particularly the slight dip observed in 2013.
Agricultural Productivity Segment Trends: The Agricultural Productivity segment demonstrated a consistent and uninterrupted year-over-year increase in depreciation and amortization expenses. Starting at US$ 112 million in 2012, the expenses grew steadily to US$ 134 million by 2016. A significant acceleration in growth occurred in 2017, where expenses jumped to US$ 163 million, marking the largest single-year increase for this segment.
Comparative Segment Analysis: While Seeds and Genomics remains the primary driver of depreciation and amortization costs, its growth rate slowed and eventually plateaued toward the end of the period. In contrast, the Agricultural Productivity segment showed more aggressive growth in the final year, contributing more significantly to the overall increase in total expenses for 2017.

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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).

Monsanto Co., total assets by reportable segment

US$ in millions

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Seeds and Genomics	16,768)	15,772)	17,330)	17,598)	16,246)	15,944)
Agricultural Productivity	4,565)	3,964)	4,590)	4,383)	4,418)	4,280)
Total	21,333)	19,736)	21,920)	21,981)	20,664)	20,224)

The total asset base exhibited a period of moderate growth followed by a notable contraction and subsequent recovery between 2012 and 2017. Total assets increased from US$ 20,224 million in 2012 to a peak of US$ 21,981 million in 2014. A significant decline occurred in 2016, where assets fell to US$ 19,736 million, before rebounding to US$ 21,333 million by August 31, 2017.

Seeds and Genomics Asset Performance: This segment represents the primary driver of the total asset value. Assets grew steadily from 2012 to 2014, reaching US$ 17,598 million. A downward trend followed, with a low of US$ 15,772 million in 2016, representing a decrease of approximately 10.4% from the 2014 peak. The segment recovered in 2017, ending the period at US$ 16,768 million.
Agricultural Productivity Asset Performance: The Agricultural Productivity segment maintained a more stable asset profile relative to the overall portfolio. Assets remained within a narrow range, starting at US$ 4,280 million in 2012 and ending at US$ 4,565 million in 2017. Similar to the larger segment, a dip was recorded in 2016, with assets descending to US$ 3,964 million.
Asset Concentration and Volatility: Analysis of the segment distribution reveals a high concentration of assets within Seeds and Genomics, which consistently accounted for approximately 78% to 80% of total reportable assets throughout the period. The synchronized decline in both segments during the 2016 fiscal year suggests a broad asset revaluation or strategic divestiture across the organization rather than segment-specific volatility.

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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).

Monsanto Co., property, plant and equipment purchases by reportable segment

US$ in millions

	Aug 31, 2017	Aug 31, 2016	Aug 31, 2015	Aug 31, 2014	Aug 31, 2013	Aug 31, 2012
Seeds and Genomics	757)	727)	762)	831)	619)	493)
Agricultural Productivity	483)	196)	205)	174)	122)	153)
Total	1,240)	923)	967)	1,005)	741)	646)

Total expenditures for property, plant, and equipment purchases demonstrated a general upward trajectory from 2012 to 2017, increasing from US$ 646 million to US$ 1,240 million. This growth was characterized by a significant peak in 2014, followed by a two-year period of moderate decline, and concluding with a sharp increase in the final fiscal year.

Seeds and Genomics Investment Trends: This segment represented the primary driver of capital expenditures for the majority of the analyzed period. A period of rapid expansion was observed between 2012 and 2014, with purchases rising from US$ 493 million to a peak of US$ 831 million. Following 2014, spending levels stabilized, fluctuating within a narrow range between US$ 727 million and US$ 762 million from 2015 through 2017.
Agricultural Productivity Investment Trends: Investment in this segment remained relatively low and stable compared to Seeds and Genomics until 2017. After fluctuating between US$ 122 million and US$ 205 million from 2012 to 2016, a substantial increase occurred in 2017, with expenditures surging to US$ 483 million. This represents a growth of approximately 146% over the previous year.
Comparative Segment Analysis: The distribution of capital allocation shifted significantly by the end of the period. While Seeds and Genomics accounted for approximately 76% of total purchases in 2012, its share of total investment decreased to approximately 61% by 2017. This shift is primarily attributable to the accelerated investment in Agricultural Productivity during the final year of the reporting period.

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