Mosaic Co. (NYSE:MOS)

Return on Assets (ROA)

The Return on Assets exhibits notable volatility over the period analyzed. Starting from a slightly negative value of -0.58% in 2017, ROA improves to a positive 2.34% in 2018, followed by a significant decline to -5.53% in 2019. Subsequently, it recovers to 3.37% in 2020 and further increases to 7.4% in 2021. This pattern indicates fluctuating asset efficiency with a substantial rebound in the last two years, suggesting improved profitability relative to asset base toward the end of the period.

Financial Leverage

The Financial Leverage ratio remains relatively stable across the years, with values ranging narrowly from 1.94 to 2.10. The ratio is constant at 1.94 in 2017 and 2018, slightly rising to 2.10 in 2019, and then maintaining a marginally lower but stable range around 2.07 to 2.08 in 2020 and 2021. This stability suggests a consistent capital structure with limited changes in the use of debt relative to equity over the timeframe.

Return on Equity (ROE)

The Return on Equity demonstrates considerable fluctuations, mirroring the volatility seen in ROA but with more pronounced swings. Starting from a negative -1.11% in 2017, ROE increases to 4.52% in 2018 before plunging to -11.62% in 2019. Subsequently, a strong recovery is observed, with ROE reaching 6.95% in 2020 and surging to 15.38% in 2021. The steep rise in the most recent years indicates enhanced effectiveness in generating shareholder returns, likely supported by the improving ROA and stable financial leverage.

Net Profit Margin

The net profit margin exhibits significant volatility over the observed period. Starting with a negative margin of -1.45% in 2017, it improves sharply to 4.9% in 2018. However, it then declines substantially to -11.98% in 2019, indicating a pronounced loss during that year. Recovery is evident from 2020 onwards, with margins reaching 7.67% in 2020 and further increasing to 13.2% in 2021, reflecting strengthened profitability.

Asset Turnover

Asset turnover ratios demonstrate moderate fluctuation around a generally stable level. The ratio rises from 0.4 in 2017 to a peak of 0.48 in 2018, followed by a slight decrease to 0.46 in 2019 and 0.44 in 2020. In 2021, asset turnover improves noticeably to 0.56, suggesting enhanced efficiency in utilizing assets to generate sales during the most recent year.

Financial Leverage

Financial leverage remains relatively stable throughout the period, fluctuating slightly between 1.94 and 2.10. The ratio holds steady at 1.94 in both 2017 and 2018, rises marginally to 2.10 in 2019, and then slightly decreases to 2.07 in 2020 and 2.08 in 2021. This indicates consistent use of debt relative to equity across the years without significant shifts in capital structure risk.

Return on Equity (ROE)

Return on equity closely mirrors the trends observed in net profit margin. It begins with a negative return of -1.11% in 2017, improving to a positive 4.52% in 2018 before plummeting to -11.62% in 2019, signifying a challenging year in terms of shareholder returns. Subsequent years show recovery, with ROE reaching 6.95% in 2020 and a remarkable increase to 15.38% in 2021, indicating growing profitability and efficient equity utilization.

Over the analyzed period, several financial ratios exhibit notable fluctuations, highlighting shifts in operational efficiency, profitability, and leverage.

Tax Burden

This ratio shows considerable volatility, starting from a negative value in 2017 (-0.28), sharply increasing to 0.86 in 2018, and peaking at an unusually high 7.6 in 2020. The negative and extraordinary values suggest irregular tax effects or one-time items affecting this metric. By 2021, it decreases to a more moderate 0.73, indicating stabilization but still remaining elevated compared to earlier years.

Interest Burden

The interest burden ratio remains relatively stable in the earlier years, around 0.69 to 0.72, but dips substantially in 2020 to 0.29, indicating either lower interest expenses or improved operational earnings before interest. It rebounds to 0.92 in 2021, signaling increased interest costs or changing capital structure dynamics.

EBIT Margin

The EBIT margin displays significant volatility and even negative performance in 2019 (-12.08%), contrasting with positive margins in other years. It improves from modest positive margins (~7.5-8%) in 2017 and 2018, drops sharply in 2019, then recovers moderately in 2020 (3.48%), and surges to a strong 19.6% in 2021. This pattern suggests a challenging operational environment around 2019 with recovery and strong margin improvement by 2021.

Asset Turnover

Asset turnover remains fairly consistent, fluctuating between 0.40 and 0.48 from 2017 to 2020, then increasing to 0.56 in 2021. This gradual improvement reflects enhanced efficiency in utilizing assets to generate revenue in the latest year.

Financial Leverage

The leverage ratio is steady, holding close to 1.94 in the first two years and slightly increasing in subsequent periods to around 2.07-2.10. This indicates a stable yet modest increase in the use of debt or equity financing, suggesting no major changes in capital structure.

Return on Equity (ROE)

ROE experiences wide swings, negative in 2017 (-1.11%) and turning positive in 2018 (4.52%), before declining sharply to -11.62% in 2019. Recovery ensues in 2020 (6.95%) with a strong rise to 15.38% in 2021. These fluctuations align closely with EBIT margin trends, reflecting volatile profitability and operational challenges during the period, followed by robust improvement in the later year.

Net Profit Margin

The net profit margin exhibited notable volatility over the analyzed period. Beginning with a negative margin of -1.45% in 2017, it improved significantly to 4.9% in 2018, indicating a positive shift in profitability. However, 2019 saw a substantial decline to -11.98%, reflecting a period of considerable operational challenges or increased expenses that severely impacted earnings. The margin rebounded in subsequent years, reaching 7.67% in 2020 and further increasing to 13.2% in 2021, demonstrating a strong recovery and improved profitability in the most recent periods.

Asset Turnover

Asset turnover ratios remained relatively stable but showed a gradual upward trend overall. Starting from 0.4 in 2017, it increased to 0.48 in 2018, suggesting improved efficiency in using assets to generate revenue. The ratio slightly decreased to 0.46 in 2019 and 0.44 in 2020, indicating a minor decline in asset utilization effectiveness. However, the ratio recovered to 0.56 in 2021, marking the highest level in the observed timeframe and signaling enhanced asset management and operational efficiency in that year.

Return on Assets (ROA)

The ROA mirrored the trends observed in net profit margin, reflecting the company’s fluctuating profitability across the years. The metric started negative at -0.58% in 2017 and improved to a positive 2.34% in 2018. A steep decline followed in 2019, with ROA falling to -5.53%, consistent with the significant loss indicated by the net profit margin in that year. Recovery ensued in 2020, with ROA rising to 3.37%, and it continued to improve substantially to 7.4% in 2021. This pattern underscores a rebound in asset profitability and overall operational performance after a difficult period.

Tax Burden

The tax burden ratio exhibits significant volatility over the period. It starts negative at -0.28 in 2017, rises sharply to 0.86 in 2018, then shows a considerable jump to 7.6 in 2020 before settling at 0.73 in 2021. The absence of data in 2019 makes trend analysis discontinuous, but overall, the ratio reflects unstable tax impacts on earnings with a peak in 2020.

Interest Burden

Interest burden remains relatively stable from 2017 to 2018, with values around 0.69 to 0.72. There is a notable decline in 2020 to 0.29, indicating a reduced interest expense relative to earnings before interest and taxes during that year. The ratio recovers strongly in 2021, reaching 0.92, suggesting an increased burden or improved earnings relative to interest after the dip.

EBIT Margin

The EBIT margin shows a varied pattern. It increases slightly from 7.54% in 2017 to 7.96% in 2018, then sharply declines to -12.08% in 2019, reflecting a loss at the operating income level. In 2020, the margin improves to 3.48%, and it experiences a substantial rise to 19.6% in 2021, indicating a strong recovery and enhanced profitability at EBIT level by the end of the period.

Asset Turnover

Asset turnover demonstrates a generally positive trend with minor fluctuations. It increases from 0.40 in 2017 to a peak of 0.48 in 2018, slightly declining in subsequent years to 0.44 in 2020, before rising again to 0.56 in 2021. This suggests an improvement in the efficiency of asset use to generate sales, particularly notable in the final year.

Return on Assets (ROA)

ROA exhibits a fluctuating pattern with initial negative returns in 2017 (-0.58%) and more significant negative performance in 2019 (-5.53%). Positive values are recorded in 2018 (2.34%), 2020 (3.37%), and a marked increase in 2021 to 7.4%. This pattern indicates improvement in overall asset profitability, especially in the last two years, signaling better utilization of assets in generating net income.

Tax Burden

The tax burden ratio exhibited significant volatility over the period. It started with a negative value of -0.28 in 2017, indicating an unusual tax situation, then improved sharply to 0.86 in 2018. The data for 2019 is missing. In 2020, the ratio rose dramatically to 7.6, an exceptionally high figure, before decreasing to a more moderate 0.73 in 2021. This irregular pattern reflects considerable fluctuations in tax expenses or tax-related adjustments affecting profitability.

Interest Burden

The interest burden ratio showed relative stability with slight fluctuations. It increased moderately from 0.69 in 2017 to 0.72 in 2018. Data for 2019 is missing. In 2020, the ratio declined notably to 0.29, suggesting a reduced interest expense relative to operating profit for that year. However, it rebounded significantly in 2021 to 0.92, the highest in the observed period, indicating increased interest costs or reduced EBIT relative to earnings before interest and taxes.

EBIT Margin

The EBIT margin displayed pronounced variability. It was positive and moderate in 2017 and 2018, at 7.54% and 7.96%, respectively. The margin turned sharply negative in 2019, falling to -12.08%, possibly indicating operational difficulties or extraordinary expenses. This improved in 2020 to a positive margin of 3.48%, and surged substantially to a robust 19.6% in 2021, marking the highest profitability from core operations within the given timeframe.

Net Profit Margin

The net profit margin mirrored the EBIT margin trends but with some distinct magnitudes. It began with a negative margin of -1.45% in 2017, then recovered significantly to 4.9% in 2018. Like EBIT margin, it turned sharply negative in 2019 to -11.98%, indicating considerable net losses. A strong recovery occurred in 2020 with a margin of 7.67%, followed by further improvement to 13.2% in 2021, highlighting enhanced overall profitability after accounting for all expenses.