Mosaic Co. (NYSE:MOS)

Net Operating Profit After Taxes (NOPAT)

Over the period under review, NOPAT demonstrated significant volatility. Starting at $610,470 thousand in 2017, it declined to $515,089 thousand in 2018, followed by a sharp drop to a negative value of $-1,197,855 thousand in 2019, indicating a substantial operating loss in that year. However, the company recovered in subsequent years, posting a positive NOPAT of $136,357 thousand in 2020 and a marked increase to $1,881,191 thousand in 2021, suggesting a strong operational recovery and growth.

Invested Capital

Invested capital showed relative stability with slight fluctuations throughout the observed period. It increased moderately from $15,024,306 thousand in 2017 to $15,589,131 thousand in 2018, then experienced a slight decrease to $15,092,200 thousand in 2019 and $14,653,500 thousand in 2020. The value rose again to $15,843,300 thousand in 2021. Overall, the invested capital remained within a close range, indicating stable investment levels despite operational performance variations.

Return on Invested Capital (ROIC)

ROIC mirrored the trend observed in NOPAT. Beginning at 4.06% in 2017, it declined to 3.3% in 2018 and further plunged into negative territory at -7.94% in 2019, reflecting the substantial operating loss that year. Subsequently, ROIC improved to 0.93% in 2020 and then dramatically increased to 11.87% in 2021, indicating enhanced efficiency in generating returns from invested capital following the previous loss period.

Operating profit margin (OPM)

The operating profit margin exhibited notable fluctuations over the observed period. Initially, it showed a moderate positive performance in 2017 and 2018, with values of 7.31% and 7.58%, respectively. However, a significant downturn occurred in 2019, with the margin declining sharply to -12.56%, indicating operational challenges or higher costs. Recovery began in 2020, with the margin improving to 3.14%, followed by a substantial increase in 2021, reaching 19.48%, marking the highest margin in the period and signaling improved profitability.

Turnover of capital (TO)

The turnover of capital showed a generally stable trend with a slight upward trajectory. Starting from 0.49 in 2017, it increased to 0.61 in 2018, remained relatively steady at 0.59 in both 2019 and 2020, and then increased to the highest point of 0.78 in 2021. This suggests a gradual improvement in asset utilization efficiency, particularly pronounced in the last year.

1 – Effective cash tax rate (CTR)

The metric representing 1 minus the effective cash tax rate underwent significant variation across the years. The highest value was observed in 2017 at 112.68%, indicating potentially negative or deferred tax payments. This figure decreased substantially in 2018 to 70.9%, normalized to 100% in 2019, and dropped further to 49.96% in 2020, suggesting higher cash tax outflows or tax liabilities. In 2021, it partially recovered to 78.13%, indicating variability in tax expense management.

Return on invested capital (ROIC)

The return on invested capital trend mirrors the operational margin's volatility. It started positively at 4.06% in 2017 and slightly declined to 3.3% in 2018. A significant negative return was recorded in 2019 at -7.94%, correlating with operational difficulties. The measure then rebounded to a modest positive value of 0.93% in 2020 and increased sharply to 11.87% in 2021, reflecting substantially improved capital efficiency and profitability.

Net operating profit before taxes (NOPBT)

The net operating profit before taxes demonstrated significant volatility over the analyzed period. Starting from a positive value of approximately 542 million in 2017, it increased to around 726 million in 2018, indicating an improvement. However, 2019 saw a sharp decline, resulting in a substantial negative figure exceeding 1.1 billion, reflecting considerable operational challenges. The company recovered in the subsequent years, with NOPBT rising to approximately 273 million in 2020 and reaching a peak of about 2.41 billion in 2021, indicating strong profitability restoration and growth.

Net sales

Net sales followed a generally positive trajectory with fluctuations. Beginning at approximately 7.41 billion in 2017, sales increased notably to nearly 9.59 billion in 2018. A slight decline was observed in 2019 to about 8.91 billion, continuing with a further decrease to 8.68 billion in 2020. Nevertheless, 2021 marked a significant recovery with net sales surging to approximately 12.36 billion, the highest level in the period under review, indicating expanded market activity or improved sales strategies.

Operating profit margin (OPM)

The operating profit margin reflected the volatility seen in profitability. The margin was fairly stable and positive in 2017 and 2018 at roughly 7.3% and 7.6%, respectively. There was a drastic decline to negative 12.56% in 2019, corresponding to the loss recorded in profitability for that year. The margin rebounded to 3.14% in 2020 and sharply increased to 19.48% in 2021, indicating enhanced operational efficiency and profitability relative to sales.

Summary

Overall, the data reveals a period of financial instability peaking in 2019 with substantial losses, followed by a strong recovery phase in 2020 and 2021. The substantial increase in net sales in 2021, accompanied by the highest operating profit margin and net operating profit before taxes, suggests effective operational improvements and favorable market conditions in the later years. The year 2019 stands out as an exceptional downturn, highlighting a critical period requiring strategic reassessment. The subsequent rebound indicates successful corrective measures and growth momentum.

The financial data reveals several important trends over the five-year period ending in 2021.

Net Sales

Net sales exhibited a general upward trend with some fluctuations. Starting at approximately 7.41 billion US dollars in 2017, sales increased notably to about 9.59 billion in 2018. This was followed by a slight decrease in 2019 and 2020, reaching around 8.91 billion and 8.68 billion respectively. A significant rise occurred in 2021, with net sales peaking at approximately 12.36 billion, the highest value recorded during the period.

Invested Capital

Invested capital showed moderate variation but remained relatively stable. It started at about 15.02 billion US dollars in 2017, increased to 15.59 billion in 2018, then slightly decreased over the next two years to around 15.09 billion in 2019 and 14.65 billion in 2020. In 2021, invested capital rose again to approximately 15.84 billion, indicating renewed investment or asset base expansion.

Turnover of Capital (TO)

The turnover of capital ratio, which measures the efficiency with which the company uses its invested capital to generate sales, showed improvement over the period. Starting from 0.49 in 2017, it increased to 0.61 in 2018, then experienced a slight decrease in 2019 and 2020 (0.59 each year). In 2021, the ratio improved significantly to 0.78, suggesting enhanced capital utilization and operational efficiency during that year.

Overall, the data indicates a strengthening business performance in 2021, demonstrated by the highest net sales figure and improved capital turnover rate. Despite some fluctuations in prior years, the company appears to have optimized its use of invested capital, leading to higher sales productivity by the end of the period. The relative stability of invested capital throughout the years suggests controlled capital deployment with strategic increases concurrent with the rise in sales and efficiency metrics.

Cash Operating Taxes

The cash operating taxes exhibit significant fluctuations over the period analyzed. Initially, in 2017, there was a negative cash tax amount of -68,678 thousand US dollars, indicating possible tax refunds or credits. This shifted to a positive figure in 2018, rising sharply to 211,403 thousand US dollars. Subsequent years show variability with 79,295 thousand US dollars in 2019, increasing again to 136,576 thousand US dollars in 2020, and reaching a substantial peak of 526,561 thousand US dollars in 2021. The trend suggests increasing cash tax payments with substantial year-to-year volatility.

Net Operating Profit Before Taxes (NOPBT)

The net operating profit before taxes shows considerable volatility across the years. Profits were strong in 2017 and 2018 with values of 541,792 and 726,492 thousand US dollars respectively. However, 2019 marks a steep decline resulting in a significant operating loss of -1,118,560 thousand US dollars. A recovery trend is evident thereafter, with positive profits restored in 2020 at 272,933 thousand US dollars and a pronounced increase in 2021 to 2,407,752 thousand US dollars, the highest in the period. This suggests the company experienced a challenging year in 2019 but managed a robust turnaround by 2021.

Effective Cash Tax Rate (CTR)

The effective cash tax rate varies notably during the period. In 2017, the rate was negative at -12.68%, indicative of tax benefits or refunds exceeding tax liabilities. This increased to 29.10% in 2018. No data was reported for 2019, possibly due to the loss incurred. In 2020, the tax rate rose significantly to 50.04%, reflecting a higher tax burden relative to operating profit. In 2021, the rate declined to 21.87%, suggesting improved tax efficiency or benefits impacting the effective tax rate. The fluctuations correspond with the changing profitability in the respective years.