Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Mosaic Co., ROIC calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | 1,881,191) | 136,357) | (1,197,855) | 515,089) | 610,470) | |
| Invested capital2 | 15,843,300) | 14,653,500) | 15,092,200) | 15,589,131) | 15,024,306) | |
| Performance Ratio | ||||||
| ROIC3 | 11.87% | 0.93% | -7.94% | 3.30% | 4.06% | |
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Linde plc | 5.24% | 3.43% | 3.08% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 NOPAT. See details »
2 Invested capital. See details »
3 2021 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,881,191 ÷ 15,843,300 = 11.87%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Mosaic Co. ROIC improved from 2019 to 2020 and from 2020 to 2021. |
Decomposition of ROIC
Mosaic Co., decomposition of ROIC
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2021 year is the increase in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Mosaic Co., OPM calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | 1,881,191) | 136,357) | (1,197,855) | 515,089) | 610,470) | |
| Add: Cash operating taxes2 | 526,561) | 136,576) | 79,295) | 211,403) | (68,678) | |
| Net operating profit before taxes (NOPBT) | 2,407,752) | 272,933) | (1,118,560) | 726,492) | 541,792) | |
| Net sales | 12,357,400) | 8,681,700) | 8,906,300) | 9,587,300) | 7,409,400) | |
| Profitability Ratio | ||||||
| OPM3 | 19.48% | 3.14% | -12.56% | 7.58% | 7.31% | |
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Linde plc | 17.33% | 14.48% | 12.41% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 Calculation
OPM = 100 × NOPBT ÷ Net sales
= 100 × 2,407,752 ÷ 12,357,400 = 19.48%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Mosaic Co. OPM improved from 2019 to 2020 and from 2020 to 2021. |
Turnover of Capital (TO)
Mosaic Co., TO calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net sales | 12,357,400) | 8,681,700) | 8,906,300) | 9,587,300) | 7,409,400) | |
| Invested capital1 | 15,843,300) | 14,653,500) | 15,092,200) | 15,589,131) | 15,024,306) | |
| Efficiency Ratio | ||||||
| TO2 | 0.78 | 0.59 | 0.59 | 0.61 | 0.49 | |
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Linde plc | 0.42 | 0.35 | 0.36 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Invested capital. See details »
2 2021 Calculation
TO = Net sales ÷ Invested capital
= 12,357,400 ÷ 15,843,300 = 0.78
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Mosaic Co. TO improved from 2019 to 2020 and from 2020 to 2021. |
Effective Cash Tax Rate (CTR)
Mosaic Co., CTR calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net operating profit after taxes (NOPAT)1 | 1,881,191) | 136,357) | (1,197,855) | 515,089) | 610,470) | |
| Add: Cash operating taxes2 | 526,561) | 136,576) | 79,295) | 211,403) | (68,678) | |
| Net operating profit before taxes (NOPBT) | 2,407,752) | 272,933) | (1,118,560) | 726,492) | 541,792) | |
| Tax Rate | ||||||
| CTR3 | 21.87% | 50.04% | — | 29.10% | -12.68% | |
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Linde plc | 28.80% | 31.56% | 31.01% | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 526,561 ÷ 2,407,752 = 21.87%
4 Click competitor name to see calculations.