Mosaic Co. (NYSE:MOS)

Mosaic Co., adjusted financial ratios

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Activity Ratio
Total Asset Turnover
Reported	0.56	0.44	0.46	0.48	0.40
Adjusted	0.59	0.47	0.47	0.48	0.40
Liquidity Ratio
Current Ratio
Reported	1.11	1.12	1.43	1.71	2.27
Adjusted	1.11	1.12	1.44	1.71	2.27
Solvency Ratios
Debt to Equity
Reported	0.47	0.54	0.58	0.49	0.58
Adjusted	0.48	0.56	0.56	0.47	0.56
Debt to Capital
Reported	0.32	0.35	0.37	0.33	0.37
Adjusted	0.32	0.36	0.36	0.32	0.36
Financial Leverage
Reported	2.08	2.07	2.10	1.94	1.94
Adjusted	1.95	1.93	1.90	1.77	1.78
Profitability Ratios
Net Profit Margin
Reported	13.20%	7.67%	-11.98%	4.90%	-1.45%
Adjusted	13.38%	-2.71%	-14.54%	-2.43%	10.28%
Return on Equity (ROE)
Reported	15.38%	6.95%	-11.62%	4.52%	-1.11%
Adjusted	15.36%	-2.44%	-13.09%	-2.06%	7.25%
Return on Assets (ROA)
Reported	7.40%	3.37%	-5.53%	2.34%	-0.58%
Adjusted	7.86%	-1.26%	-6.89%	-1.16%	4.09%

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).

The financial performance from 2017 to 2021 is characterized by significant volatility in profitability and a consistent decline in short-term liquidity, balanced by improved asset utilization and relatively stable long-term solvency.

Asset Efficiency: A general upward trend in asset utilization is observed. The adjusted total asset turnover increased from 0.40 in 2017 to 0.59 in 2021, indicating an improved ability to generate revenue from the asset base over the five-year period.
Liquidity Position: A marked deterioration in liquidity is evident. The adjusted current ratio declined steadily from 2.27 in 2017 to 1.11 in 2021, suggesting a reduction in the margin of safety for meeting short-term obligations.
Solvency and Capital Structure: Solvency metrics remained relatively stable with a slight trend toward lower leverage. The adjusted debt to equity ratio ended the period at 0.48, down from 0.56 in 2017, and the adjusted debt to capital ratio decreased from 0.36 to 0.32. Conversely, adjusted financial leverage saw a modest increase from 1.78 in 2017 to 1.95 in 2021.
Profitability and Returns: Profitability metrics exhibited extreme volatility, reaching a nadir in 2019 before a strong recovery in 2021. The adjusted net profit margin dropped from 10.28% in 2017 to -14.54% in 2019, before rebounding to 13.38% in 2021. This pattern is mirrored in the adjusted return on equity (ROE), which fell to -13.09% in 2019 and climbed to 15.36% in 2021, as well as the adjusted return on assets (ROA), which moved from -6.89% in 2019 to 7.86% in 2021.

The divergence between reported and adjusted figures is most prominent in the profitability metrics between 2017 and 2020, where adjusted values often show deeper losses or higher gains than reported figures. However, by 2021, reported and adjusted metrics for profitability and efficiency converged, reflecting a period of synchronized financial recovery.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net sales	12,357,400)	8,681,700)	8,906,300)	9,587,300)	7,409,400)
Total assets	22,036,400)	19,789,800)	19,298,500)	20,119,200)	18,633,400)
Activity Ratio
Total asset turnover¹	0.56	0.44	0.46	0.48	0.40
Adjusted
Selected Financial Data (US$ in thousands)
Net sales	12,357,400)	8,681,700)	8,906,300)	9,587,300)	7,409,400)
Adjusted total assets²	21,039,800)	18,610,800)	18,786,600)	20,061,131)	18,646,806)
Activity Ratio
Adjusted total asset turnover³	0.59	0.47	0.47	0.48	0.40

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 2021 Calculation
Total asset turnover = Net sales ÷ Total assets
= 12,357,400 ÷ 22,036,400 = 0.56

² Adjusted total assets. See details »

³ 2021 Calculation
Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 12,357,400 ÷ 21,039,800 = 0.59

An analysis of asset utilization efficiency from 2017 to 2021 reveals a general improvement in the capacity to generate revenue from the asset base, particularly when utilizing adjusted metrics.

Adjusted Total Asset Turnover Trends: The adjusted total asset turnover ratio demonstrated an overall upward trajectory, rising from 0.40 in 2017 to 0.59 in 2021. An initial increase to 0.48 was observed in 2018, followed by a period of relative stability where the ratio remained constant at 0.47 during 2019 and 2020. A significant acceleration occurred in 2021, resulting in the highest turnover rate within the analyzed period.
Comparative Analysis of Reported versus Adjusted Ratios: Adjusted total asset turnover consistently equaled or exceeded the reported total asset turnover. While the two metrics were identical in 2017 and 2018, a divergence emerged starting in 2019. In 2020, the adjusted ratio of 0.47 provided a more favorable efficiency reading than the reported ratio of 0.44. This gap widened in 2021, with the adjusted ratio reaching 0.59 compared to the reported 0.56, indicating that the adjustments made to the asset base enhanced the perceived productivity of those assets.
Revenue and Asset Correlation: The sharp increase in the turnover ratio in 2021 is primarily attributable to a substantial growth in net sales, which rose to 12,357,400 thousand US dollars. This revenue expansion outpaced the growth in adjusted total assets, which stood at 21,039,800 thousand US dollars, thereby driving the efficiency ratio upward. Conversely, the stability observed between 2019 and 2020 resulted from a slight decline in net sales that was offset by a corresponding decrease in adjusted total assets.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Current assets	5,325,300)	3,521,200)	3,718,200)	4,237,000)	4,616,500)
Current liabilities	4,787,400)	3,146,500)	2,591,700)	2,483,700)	2,031,100)
Liquidity Ratio
Current ratio¹	1.11	1.12	1.43	1.71	2.27
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted current assets²	5,325,800)	3,521,600)	3,721,700)	4,238,300)	4,618,800)
Current liabilities	4,787,400)	3,146,500)	2,591,700)	2,483,700)	2,031,100)
Liquidity Ratio
Adjusted current ratio³	1.11	1.12	1.44	1.71	2.27

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 2021 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,325,300 ÷ 4,787,400 = 1.11

² Adjusted current assets. See details »

³ 2021 Calculation
Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 5,325,800 ÷ 4,787,400 = 1.11

A sustained contraction in short-term liquidity is evident between 2017 and 2021. The adjusted current ratio declined consistently throughout the period, indicating a reduction in the ability to cover short-term obligations using short-term assets.

Adjusted Current Ratio Performance: The adjusted current ratio experienced a significant downward trajectory, falling from 2.27 in 2017 to 1.11 by the end of 2021. The most pronounced decrease occurred between 2017 and 2020, with the ratio stabilizing between 1.12 and 1.11 in the final two years of the analyzed period.
Analysis of Current Assets: Adjusted current assets exhibited a period of decline from 4,618,800 thousand US$ in 2017 to a low of 3,521,600 thousand US$ in 2020. A substantial increase followed in 2021, with assets rising to 5,325,800 thousand US$, representing the highest level within the five-year window.
Current Liabilities Expansion: Short-term obligations demonstrated a consistent and aggressive upward trend. Current liabilities grew from 2,031,100 thousand US$ in 2017 to 4,787,400 thousand US$ in 2021. This steady increase in liabilities served as the primary driver for the deterioration of the liquidity ratio, particularly in 2021, where liabilities increased sharply in tandem with assets.
Comparison of Reported and Adjusted Figures: The variance between reported and adjusted figures for both assets and ratios is marginal. The adjusted current ratio tracked the reported ratio almost identically across all five years, suggesting that the adjustments applied to current assets had a negligible impact on the overall liquidity assessment.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total debt	5,025,300)	5,218,100)	5,354,900)	5,101,800)	5,613,900)
Total Mosaic stockholders’ equity	10,604,100)	9,581,400)	9,185,500)	10,397,300)	9,617,500)
Solvency Ratio
Debt to equity¹	0.47	0.54	0.58	0.49	0.58
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	5,149,300)	5,391,700)	5,549,000)	5,386,231)	5,879,606)
Adjusted total equity³	10,768,100)	9,637,000)	9,896,400)	11,342,800)	10,504,100)
Solvency Ratio
Adjusted debt to equity⁴	0.48	0.56	0.56	0.47	0.56

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 2021 Calculation
Debt to equity = Total debt ÷ Total Mosaic stockholders’ equity
= 5,025,300 ÷ 10,604,100 = 0.47

² Adjusted total debt. See details »

³ Adjusted total equity. See details »

⁴ 2021 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 5,149,300 ÷ 10,768,100 = 0.48

The financial leverage of the organization exhibited a fluctuating but generally improving trend between 2017 and 2021. The adjusted debt to equity ratio suggests a conservative capital structure, ending the period at a five-year low of 0.48.

Debt Obligations: Total debt showed a gradual decline from 5.6 billion USD in 2017 to 5.0 billion USD in 2021. Adjusted total debt followed a similar trajectory, decreasing from 5.9 billion USD to 5.1 billion USD over the same period, reflecting a consistent reduction in overall liabilities.
Equity Position: Stockholders' equity experienced volatility, peaking in 2018 at approximately 10.4 billion USD before a contraction in 2019. A recovery trend was established in 2020, culminating in a five-year high of 10.6 billion USD by the end of 2021. Adjusted equity mirrored this movement, reaching 10.8 billion USD in the final year of the analysis.
Leverage Ratio Analysis: The adjusted debt to equity ratio remained within a range of 0.47 to 0.56. Peaks in leverage were observed in 2017 and 2019 at 0.56, while the most favorable leverage position occurred in 2018 at 0.47. By December 31, 2021, the ratio stabilized at 0.48, indicating a strengthened equity base relative to total debt.
Reported vs. Adjusted Comparison: Adjusted ratios consistently presented a more favorable solvency profile than reported figures for the majority of the period. Specifically, the adjusted debt to equity ratio was typically lower than the reported ratio, suggesting that the applied adjustments effectively reduce the perceived weight of debt relative to equity.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total debt	5,025,300)	5,218,100)	5,354,900)	5,101,800)	5,613,900)
Total capital	15,629,400)	14,799,500)	14,540,400)	15,499,100)	15,231,400)
Solvency Ratio
Debt to capital¹	0.32	0.35	0.37	0.33	0.37
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	5,149,300)	5,391,700)	5,549,000)	5,386,231)	5,879,606)
Adjusted total capital³	15,917,400)	15,028,700)	15,445,400)	16,729,031)	16,383,706)
Solvency Ratio
Adjusted debt to capital⁴	0.32	0.36	0.36	0.32	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 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 5,025,300 ÷ 15,629,400 = 0.32

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2021 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 5,149,300 ÷ 15,917,400 = 0.32

The financial position of Mosaic Co. from 2017 to 2021 reflects a stable approach to capital structure, characterized by a general reduction in overall leverage. Both reported and adjusted metrics indicate that the company maintains a conservative debt profile, with debt consistently representing approximately one-third of total capital.

Debt Obligations and Capital Trends: Total debt exhibited a general downward trajectory, decreasing from 5,613,900 thousand US dollars in 2017 to 5,025,300 thousand US dollars by 2021. Adjusted total debt followed a similar pattern, peaking in 2017 at 5,879,606 thousand US dollars and concluding the period at 5,149,300 thousand US dollars. Total capital remained relatively stable, fluctuating between a low of 14,540,400 thousand US dollars in 2019 and a high of 16,383,706 thousand US dollars in the adjusted 2017 figures.
Reported Debt to Capital Analysis: The reported debt to capital ratio showed volatility during the period, starting at 0.37 in 2017, dipping to 0.33 in 2018, and returning to 0.37 in 2019. A subsequent downward trend occurred over the final two years, reaching a period low of 0.32 by December 31, 2021.
Adjusted Debt to Capital Analysis: The adjusted debt to capital ratio demonstrated greater consistency than the reported ratio. It remained at 0.36 for three of the five analyzed years (2017, 2019, and 2020). A notable reduction is observed in 2018 and 2021, where the ratio declined to 0.32, aligning with the overall trend of debt reduction relative to the total capital base.
Comparison of Reported and Adjusted Metrics: Adjusted total debt was consistently higher than reported total debt throughout the period, suggesting the inclusion of additional liabilities in the adjusted calculation. Despite these differences in absolute values, the resulting adjusted debt to capital ratios remained closely correlated with the reported ratios, confirming that the underlying leverage trend is consistent across both reporting methodologies.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total assets	22,036,400)	19,789,800)	19,298,500)	20,119,200)	18,633,400)
Total Mosaic stockholders’ equity	10,604,100)	9,581,400)	9,185,500)	10,397,300)	9,617,500)
Solvency Ratio
Financial leverage¹	2.08	2.07	2.10	1.94	1.94
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets²	21,039,800)	18,610,800)	18,786,600)	20,061,131)	18,646,806)
Adjusted total equity³	10,768,100)	9,637,000)	9,896,400)	11,342,800)	10,504,100)
Solvency Ratio
Adjusted financial leverage⁴	1.95	1.93	1.90	1.77	1.78

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 2021 Calculation
Financial leverage = Total assets ÷ Total Mosaic stockholders’ equity
= 22,036,400 ÷ 10,604,100 = 2.08

² Adjusted total assets. See details »

³ Adjusted total equity. See details »

⁴ 2021 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 21,039,800 ÷ 10,768,100 = 1.95

Between 2017 and 2021, the financial position is characterized by a general expansion of total assets and stockholders' equity, despite a notable contraction in 2019. Total assets grew from 18.6 billion to 22.0 billion, while total equity increased from 9.6 billion to 10.6 billion over the five-year period.

Reported Financial Leverage: Reported leverage remained relatively stable, fluctuating within a narrow range between 1.94 in 2017 and 2.10 in 2019. The ratio peaked in 2019 before stabilizing around 2.07 to 2.08 in the subsequent two years.
Adjusted Financial Leverage: The adjusted leverage ratio exhibits a consistent upward trend following a slight dip in 2018. From a low of 1.77 in 2018, the ratio increased sequentially to 1.90 in 2019, 1.93 in 2020, and 1.95 in 2021. A consistent gap is observable between reported and adjusted leverage, with the adjusted ratio remaining lower across all analyzed years.
Adjusted Asset and Equity Dynamics: Adjusted total assets reached a peak of 21.0 billion in 2021, reflecting the broader growth in the company's asset base. Adjusted total equity peaked earlier, in 2018, at 11.3 billion, before declining and then recovering to 10.8 billion by 2021. The divergence between reported and adjusted figures suggests a systematic modification of the balance sheet for leverage calculations, resulting in a more conservative leverage profile than what is reported.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net earnings (loss) attributable to Mosaic	1,630,600)	666,100)	(1,067,400)	470,000)	(107,200)
Net sales	12,357,400)	8,681,700)	8,906,300)	9,587,300)	7,409,400)
Profitability Ratio
Net profit margin¹	13.20%	7.67%	-11.98%	4.90%	-1.45%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net earnings (loss) including noncontrolling interests²	1,653,700)	(235,300)	(1,295,200)	(233,400)	761,800)
Net sales	12,357,400)	8,681,700)	8,906,300)	9,587,300)	7,409,400)
Profitability Ratio
Adjusted net profit margin³	13.38%	-2.71%	-14.54%	-2.43%	10.28%

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 2021 Calculation
Net profit margin = 100 × Net earnings (loss) attributable to Mosaic ÷ Net sales
= 100 × 1,630,600 ÷ 12,357,400 = 13.20%

² Adjusted net earnings (loss) including noncontrolling interests. See details »

³ 2021 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings (loss) including noncontrolling interests ÷ Net sales
= 100 × 1,653,700 ÷ 12,357,400 = 13.38%

The financial performance from 2017 to 2021 is characterized by significant volatility in profitability, marked by alternating periods of loss and recovery. While net sales peaked in 2021, profitability margins fluctuated substantially throughout the five-year period.

Adjusted Net Profit Margin Trends: The adjusted net profit margin experienced a sharp contraction, falling from 10.28% in 2017 to a low of -14.54% in 2019. This downward trend reversed in 2020 as the margin improved to -2.71%, eventually surging to a period high of 13.38% in 2021.
Comparison of Reported and Adjusted Profitability: A divergence between reported and adjusted margins is evident in the initial years. In 2017, the adjusted margin remained positive at 10.28% despite a reported net profit margin of -1.45%. By 2021, these two metrics converged, with reported and adjusted margins reaching 13.20% and 13.38%, respectively, indicating a alignment between operational results and adjusted earnings.
Revenue and Margin Correlation: Net sales increased from 7.4 billion US dollars in 2017 to 12.3 billion US dollars in 2021. The most substantial recovery in the adjusted net profit margin coincided with the highest recorded net sales in 2021, suggesting a strong correlation between revenue growth and the restoration of profitability during the final year of the period analyzed.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net earnings (loss) attributable to Mosaic	1,630,600)	666,100)	(1,067,400)	470,000)	(107,200)
Total Mosaic stockholders’ equity	10,604,100)	9,581,400)	9,185,500)	10,397,300)	9,617,500)
Profitability Ratio
ROE¹	15.38%	6.95%	-11.62%	4.52%	-1.11%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net earnings (loss) including noncontrolling interests²	1,653,700)	(235,300)	(1,295,200)	(233,400)	761,800)
Adjusted total equity³	10,768,100)	9,637,000)	9,896,400)	11,342,800)	10,504,100)
Profitability Ratio
Adjusted ROE⁴	15.36%	-2.44%	-13.09%	-2.06%	7.25%

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 2021 Calculation
ROE = 100 × Net earnings (loss) attributable to Mosaic ÷ Total Mosaic stockholders’ equity
= 100 × 1,630,600 ÷ 10,604,100 = 15.38%

² Adjusted net earnings (loss) including noncontrolling interests. See details »

³ Adjusted total equity. See details »

⁴ 2021 Calculation
Adjusted ROE = 100 × Adjusted net earnings (loss) including noncontrolling interests ÷ Adjusted total equity
= 100 × 1,653,700 ÷ 10,768,100 = 15.36%

The financial performance from 2017 through 2021 is characterized by significant volatility in earnings and return on equity (ROE). A pattern of cyclicality is evident, with the company experiencing alternating periods of profitability and losses, culminating in a strong recovery by the end of the period.

Adjusted ROE Trend Analysis: The adjusted ROE exhibited extreme fluctuations over the five-year duration. After starting at 7.25% in 2017, the metric entered a three-year period of negative returns, reaching a trough of -13.09% in 2019. A gradual improvement followed in 2020 (-2.44%) before a sharp reversal in 2021, where the adjusted ROE reached its peak at 15.36%.
Convergence of Reported and Adjusted Metrics: A notable divergence between reported and adjusted net earnings existed between 2017 and 2020. For instance, in 2017, reported net earnings were negative while adjusted earnings were positive. Conversely, in 2018, reported earnings were positive while adjusted earnings were negative. This divergence narrowed significantly by 2021, where reported ROE (15.38%) and adjusted ROE (15.36%) converged, suggesting that non-recurring items had a negligible impact on the final result in the most recent period.
Equity Base Stability: Despite the volatility in net earnings and ROE, the equity base remained relatively stable. Total stockholders' equity fluctuated within a range of approximately 9.19 billion to 10.60 billion US dollars. This stability indicates that the swings in ROE were driven primarily by volatility in net income rather than significant changes in the capital structure or massive equity erosions.
Earnings Recovery Pattern: The trajectory of net earnings shows a clear V-shaped recovery. The losses observed in 2019, which affected both reported and adjusted figures, were superseded by substantial growth in 2021. The jump in adjusted net earnings from -235.3 million US dollars in 2020 to 1.65 billion US dollars in 2021 represents the most significant positive shift in the analyzed period.

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	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net earnings (loss) attributable to Mosaic	1,630,600)	666,100)	(1,067,400)	470,000)	(107,200)
Total assets	22,036,400)	19,789,800)	19,298,500)	20,119,200)	18,633,400)
Profitability Ratio
ROA¹	7.40%	3.37%	-5.53%	2.34%	-0.58%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net earnings (loss) including noncontrolling interests²	1,653,700)	(235,300)	(1,295,200)	(233,400)	761,800)
Adjusted total assets³	21,039,800)	18,610,800)	18,786,600)	20,061,131)	18,646,806)
Profitability Ratio
Adjusted ROA⁴	7.86%	-1.26%	-6.89%	-1.16%	4.09%

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 2021 Calculation
ROA = 100 × Net earnings (loss) attributable to Mosaic ÷ Total assets
= 100 × 1,630,600 ÷ 22,036,400 = 7.40%

² Adjusted net earnings (loss) including noncontrolling interests. See details »

³ Adjusted total assets. See details »

⁴ 2021 Calculation
Adjusted ROA = 100 × Adjusted net earnings (loss) including noncontrolling interests ÷ Adjusted total assets
= 100 × 1,653,700 ÷ 21,039,800 = 7.86%

A high degree of volatility is observed in the profitability metrics of Mosaic Co. between 2017 and 2021. The return on assets, both reported and adjusted, reflects a cyclical pattern characterized by alternating periods of losses and gains, with a significant recovery peak occurring in the final year of the analyzed period.

Adjusted ROA Trends: The adjusted ROA began at 4.09% in 2017 before declining into negative territory for three consecutive years, reaching its lowest point of -6.89% in 2019. Following this trough, the metric improved to -1.26% in 2020 and experienced a sharp increase to 7.86% by December 31, 2021, marking the highest efficiency level within the five-year window.
Comparison of Reported and Adjusted Performance: Significant discrepancies are evident between reported and adjusted ROA figures, suggesting the impact of non-recurring items. In 2017, the reported ROA was negative (-0.58%) while the adjusted ROA remained positive at 4.09%. Similarly, in 2020, the reported ROA indicated a positive return of 3.37%, whereas the adjusted ROA remained negative at -1.26%. This divergence indicates that adjustments for noncontrolling interests and other non-operational items substantially altered the perceived profitability of the asset base during those years.
Asset Base and Earnings Correlation: Total assets exhibited a general upward trend, growing from $18.6 billion in 2017 to $22.0 billion in 2021. Despite this expansion of the asset base, the ROA fluctuations were primarily driven by the volatility of net earnings. The surge in Adjusted ROA in 2021 is directly attributable to the substantial increase in adjusted net earnings to $1.65 billion, which outweighed the increase in adjusted total assets.

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