Mosaic Co. (NYSE:MOS)

The financial data reveals several noteworthy trends in asset management and overall financial position over the five-year period ending December 31, 2021.

Cash and cash equivalents

There is a significant decline from 2017 to 2019, from approximately $2.15 billion to $519 million, followed by a moderate recovery through 2021 to about $770 million. This suggests a period of lower liquidity or higher cash utilization, with partial replenishment in recent years.

Receivables, net

The net receivables increased steadily, more than doubling from $643 million in 2017 to over $1.5 billion by 2021. This considerable rise might indicate higher sales on credit terms or extended collection periods, impacting working capital requirements.

Inventories

Inventory levels exhibit variability but show a generally upward trend, increasing from $1.55 billion in 2017 to $2.74 billion in 2021. The peak in 2018 was followed by a temporary decline in 2020 but then surged again. Rising inventories could reflect anticipation of higher demand or slower inventory turnover.

Other current assets

This category remains relatively stable with minor fluctuations, illustrating consistent management of miscellaneous current assets and minor components like prepaid expenses and taxes receivable.

Total current assets

Current assets decreased from $4.62 billion in 2017 to a low of $3.52 billion in 2020 but then sharply increased to $5.33 billion in 2021. The upward movement in 2021 is mainly attributed to increases in receivables and inventories, enhancing overall current asset liquidity.

Property, plant and equipment, net

Fixed assets show a clear upward trend from approximately $9.71 billion in 2017 to $12.48 billion in 2021, suggesting ongoing capital investment and asset base expansion despite minor fluctuations.

Investments in nonconsolidated companies and Goodwill

Investments in nonconsolidated companies declined from $1.09 billion to $692 million over the period, while goodwill fell sharply in 2019 and then stabilized around $1.17 billion. This pattern could indicate divestitures or impairments affecting these long-term assets.

Deferred income taxes

Deferred tax assets increased markedly, from $255 million in 2017 to a peak above $1.17 billion in 2020, before a slight decrease in 2021. This growth might reflect recognition of tax benefits or timing differences on income recognition and deductions.

Restricted cash and marketable securities

Restricted cash remained low and variable, while marketable securities held in trust showed slight growth, indicating stable short-term investment activity set aside for specific obligations.

Operating lease right-of-use assets

These assets appear only from 2019 onward due to accounting changes, with a decreasing trend from $192 million in 2019 to $120 million in 2021, reflecting lease terminations or amortization.

Other assets and noncurrent assets

Other assets and overall noncurrent assets increased steadily, indicating expansion of long-term resources and investments contributing to asset base growth.

Total assets

Total assets grew moderately from $18.63 billion in 2017 to $22.04 billion in 2021. Despite some fluctuations, the overall trajectory shows asset growth driven by fixed asset investments and increases in working capital components towards the end of the period.

In summary, the data reflects a strategy focused on expanding the tangible asset base while managing working capital dynamics, with notable increases in receivables and inventories in the most recent period. The declining cash balances early on and subsequent partial recovery suggest changing liquidity management approaches, while the growth in deferred tax assets and capital expenditures underscores broader operational and strategic shifts across the periods analyzed.