Analysis of Geographic Areas
Mosaic Co. operates in 2 regions: International countries and United States.
Area Asset Turnover
Mosaic Co., asset turnover by geographic area
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| International countries | 1.01 | 0.74 | 0.83 | 0.98 | 0.80 |
| United States | 0.63 | 0.45 | 0.39 | 0.42 | 0.43 |
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 analysis of geographic asset turnover indicates a persistent disparity in asset utilization efficiency between international markets and the United States. International operations consistently maintain a higher ratio, suggesting a more efficient conversion of assets into revenue throughout the observed period.
- International Asset Turnover
- The asset turnover ratio for international operations demonstrated volatility, beginning at 0.80 in 2017 and reaching a period peak of 1.01 by 2021. Despite a decline between 2018 and 2020, during which the ratio reached a low of 0.74, the segment concluded the period with its highest level of efficiency.
- United States Asset Turnover
- Domestic asset turnover remained relatively stagnant between 2017 and 2019, fluctuating within a narrow range from 0.43 to 0.39. A positive trend emerged starting in 2020, with the ratio increasing to 0.45 and further climbing to 0.63 in 2021, marking a notable improvement in domestic asset productivity.
- Comparative Efficiency
- A significant gap in performance is observed, as international asset turnover consistently exceeded that of the United States. While both geographic areas exhibited growth in 2021, the international segment's capacity to generate revenue from its asset base remained substantially stronger than that of the domestic segment.
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Area Asset Turnover: International countries
Mosaic Co.; International countries; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | 8,428,100) | 6,108,400) | 6,573,500) | 6,615,600) | 4,728,400) |
| Long-lived assets | 8,308,200) | 8,227,400) | 7,964,400) | 6,774,000) | 5,886,800) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.01 | 0.74 | 0.83 | 0.98 | 0.80 |
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
Area asset turnover = Net sales ÷ Long-lived assets
= 8,428,100 ÷ 8,308,200 = 1.01
An analysis of the international geographic areas reveals a period of significant volatility in revenue generation contrasted with a steady expansion of the long-lived asset base between 2017 and 2021. While the overall trajectory of asset utilization ended on a positive note, the interim years were characterized by a misalignment between capital investment and sales output.
- Net Sales Performance
- Revenue exhibited considerable fluctuations over the five-year period. A substantial increase occurred between 2017 and 2018, with sales rising from US$ 4.73 billion to US$ 6.62 billion. This was followed by a period of moderate decline through 2020, where net sales reached a cyclical low of US$ 6.11 billion. A sharp recovery was observed in 2021, with net sales peaking at US$ 8.43 billion, marking the highest value in the analyzed period.
- Long-lived Asset Growth
- Unlike the volatility seen in sales, long-lived assets demonstrated a consistent and linear upward trend. Assets grew from US$ 5.89 billion in 2017 to US$ 8.31 billion by 2021. This continuous investment indicates a sustained commitment to expanding the international infrastructure and capital base regardless of short-term revenue swings.
- Area Asset Turnover Efficiency
- The asset turnover ratio reflects the efficiency with which the company utilizes its assets to generate revenue. The ratio peaked in 2018 at 0.98, coinciding with a surge in sales. However, as long-lived assets continued to grow while sales stagnated or declined in 2019 and 2020, the turnover ratio dropped to a period low of 0.74. This suggests a period of underutilization of the expanding asset base. By 2021, the ratio recovered to 1.01, indicating that revenue growth finally outpaced asset expansion, resulting in the highest level of operational efficiency within the five-year window.
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Area Asset Turnover: United States
Mosaic Co.; United States; area asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Net sales | 3,929,300) | 2,573,300) | 2,332,800) | 2,971,700) | 2,681,000) |
| Long-lived assets | 6,233,600) | 5,688,800) | 5,943,600) | 7,056,900) | 6,181,900) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.63 | 0.45 | 0.39 | 0.42 | 0.43 |
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
Area asset turnover = Net sales ÷ Long-lived assets
= 3,929,300 ÷ 6,233,600 = 0.63
The analysis of asset utilization for the United States geographic area from 2017 to 2021 reveals a period of initial fluctuation followed by a significant improvement in operational efficiency. After a decline in asset turnover through 2019, a strong recovery occurred, culminating in a peak efficiency level by the end of the period.
- Net Sales Performance
- Revenue exhibited volatility between 2017 and 2020, peaking at 2.97 billion in 2018 before dropping to a low of 2.33 billion in 2019. However, a substantial growth trajectory was established in 2021, with net sales increasing to 3.93 billion, representing a significant expansion in revenue generation compared to the previous four years.
- Long-Lived Asset Base
- The asset base remained relatively stable, fluctuating between 5.69 billion and 7.06 billion. A peak in asset value was noted in 2018, followed by a contraction through 2020. By 2021, long-lived assets rose to 6.23 billion, returning to levels similar to those observed in 2017.
- Area Asset Turnover Efficiency
- The asset turnover ratio experienced a downward trend from 0.43 in 2017 to a low of 0.39 in 2019, indicating a temporary decline in the efficiency of generating sales from the asset base. This trend reversed sharply in 2020 and 2021, with the ratio climbing to 0.45 and then to 0.63. The 2021 increase represents the most significant gain in productivity, suggesting that the asset base was leveraged far more effectively to drive sales volume.
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Net sales
Mosaic Co., net sales by geographic area
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| International countries | 8,428,100) | 6,108,400) | 6,573,500) | 6,615,600) | 4,728,400) |
| United States | 3,929,300) | 2,573,300) | 2,332,800) | 2,971,700) | 2,681,000) |
| Consolidated | 12,357,400) | 8,681,700) | 8,906,300) | 9,587,300) | 7,409,400) |
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).
Consolidated net sales exhibited a general upward trajectory between 2017 and 2021, increasing from 7.41 billion to 12.36 billion. Although the growth was non-linear, with a moderate decline occurring between 2018 and 2020, the period culminated in a significant expansion of revenue across all geographic segments in 2021.
- International Sales Trends
- International operations serve as the primary driver of total revenue. Net sales in this segment grew from 4.73 billion in 2017 to 8.43 billion in 2021. A period of slight contraction was observed from 2018 through 2020, where sales dipped from 6.62 billion to 6.11 billion, followed by a sharp acceleration in the final year of the period.
- United States Sales Trends
- Net sales within the United States demonstrated more volatility than the international segment. After an initial increase to 2.97 billion in 2018, sales fell to a period low of 2.33 billion in 2019. A recovery began in 2020, leading to a substantial peak of 3.93 billion in 2021, representing the highest domestic sales volume in the observed timeframe.
- Geographic Revenue Concentration
- The revenue mix remains heavily weighted toward international markets. International sales accounted for approximately 63.8% of consolidated net sales in 2017, increasing to a peak of approximately 73.8% in 2019, and ending at approximately 68.2% in 2021. This distribution indicates a consistent strategic reliance on global markets for the majority of the company's top-line performance.
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Long-lived assets
Mosaic Co., long-lived assets by geographic area
US$ in thousands
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| International countries | 8,308,200) | 8,227,400) | 7,964,400) | 6,774,000) | 5,886,800) |
| United States | 6,233,600) | 5,688,800) | 5,943,600) | 7,056,900) | 6,181,900) |
| Consolidated | 14,541,800) | 13,916,200) | 13,908,000) | 13,830,900) | 12,068,700) |
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).
Consolidated long-lived assets demonstrate a consistent upward trajectory over the five-year period, increasing from $12.07 billion in 2017 to $14.54 billion in 2021. The most significant growth occurred between 2017 and 2018, after which the total asset base remained relatively stable through 2020 before experiencing another increase in 2021.
- International Asset Growth
- A consistent year-over-year increase is observed in international long-lived assets. These assets grew from $5.89 billion in 2017 to $8.31 billion in 2021, representing a steady expansion of the company's global physical footprint.
- United States Asset Volatility
- Domestic long-lived assets exhibited significant fluctuation. After an initial increase to a peak of $7.06 billion in 2018, a downward trend occurred over the next two years, with assets reaching a low of $5.69 billion in 2020. A recovery was noted in 2021, with assets rising back to $6.23 billion.
- Geographic Asset Distribution Shift
- A strategic shift in asset allocation is evident between 2018 and 2019. Prior to 2019, the United States held a larger portion of long-lived assets than international locations. By 2019, this dynamic reversed, with international assets becoming the dominant component of the consolidated total, a trend that persisted through 2021.
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