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).
- International countries asset turnover
- The asset turnover ratio for international countries exhibited variability over the five-year period. Starting at 0.8 in 2017, it increased significantly to 0.98 in 2018, indicating improved efficiency in asset utilization. However, this was followed by a decline to 0.83 in 2019 and a further decrease to 0.74 in 2020. In 2021, the ratio rebounded sharply to 1.01, reaching its highest level in the observed period and suggesting enhanced asset turnover performance internationally.
- United States asset turnover
- The asset turnover ratio for the United States consistently remained lower than that of international countries throughout the period. It started at 0.43 in 2017 and showed a slight decline to 0.42 in 2018 and further to 0.39 in 2019, indicating a gradual drop in asset efficiency. In 2020, the ratio improved modestly to 0.45 and then increased more substantially to 0.63 in 2021, signaling a recovery and improved asset turnover in the U.S. market.
- Comparative observations
- International asset turnover ratios exhibited greater volatility but demonstrated a recovery trend by 2021 to its highest point. In contrast, the U.S. asset turnover showed a more gradual decline initially but experienced a notable improvement in the last two years. The international segment generally maintained a higher asset turnover ratio compared to the U.S., though the gap narrowed by the end of 2021 due to accelerated growth in U.S. asset turnover.
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
- Net Sales
- Net sales exhibited a general upward trend over the five-year period under review. Beginning at approximately 4.73 billion US dollars in 2017, net sales increased substantially to around 6.62 billion in 2018. Following this peak, there was a slight decline in 2019 and 2020, with sales dropping to approximately 6.57 billion and then further to 6.11 billion US dollars respectively. However, 2021 saw a strong rebound, with net sales reaching approximately 8.43 billion, the highest level in the period analyzed.
- Long-lived Assets
- Long-lived assets demonstrated a consistent upward trajectory throughout the period. Starting at about 5.89 billion US dollars in 2017, the value of these assets increased every year, reaching approximately 8.31 billion by the end of 2021. This steady growth indicates ongoing investment or acquisition of long-term assets.
- Area Asset Turnover
- The area asset turnover ratio showed variability and some volatility across the years. It began at 0.8 in 2017, improving significantly to 0.98 in 2018. This was followed by a notable decrease to 0.83 in 2019 and a further decline to 0.74 in 2020, reflecting a reduction in efficiency regarding asset utilization to generate net sales. In 2021, the ratio rose markedly to 1.01, exceeding all prior years, suggesting a substantial improvement in the efficiency with which long-lived assets generated sales during the last year observed.
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
- Net Sales
- Net sales demonstrated variability over the five-year period. There was an initial increase from 2,681,000 thousand USD in 2017 to 2,971,700 thousand USD in 2018. This was followed by a noticeable decline to 2,332,800 thousand USD in 2019. Sales then recovered somewhat in 2020, reaching 2,573,300 thousand USD, before experiencing a significant rise to 3,929,300 thousand USD in 2021. This overall pattern indicates volatility with a strong rebound and growth in the most recent year.
- Long-lived Assets
- Long-lived assets showed fluctuation throughout the period. They increased from 6,181,900 thousand USD in 2017 to a peak of 7,056,900 thousand USD in 2018. This peak was followed by a decline in 2019 to 5,943,600 thousand USD, which then continued to decrease to 5,688,800 thousand USD in 2020. In 2021, assets grew again to 6,233,600 thousand USD. This indicates a possible period of asset reduction or divestiture in 2019 and 2020, with reinvestment or asset accumulation resuming in 2021.
- Area Asset Turnover Ratio
- The area asset turnover ratio, representing the efficiency of asset utilization in generating sales in the United States, remained relatively stable around 0.4 from 2017 to 2019. It experienced an improvement to 0.45 in 2020 and a marked increase to 0.63 in 2021. This upward trend in asset turnover ratio in the last two years reflects enhanced efficiency or effectiveness in leveraging fixed assets to generate revenue, coinciding with the strong sales growth observed in 2021.
- Overall Insights
- The data suggest a cycle of investment and divestment in long-lived assets in the United States geographic segment, combined with fluctuating net sales that ultimately show a robust increase in the latest year. The improved asset turnover ratio in 2021 indicates better operational efficiency or asset management practices leading to higher sales output per unit of asset. These factors collectively point to positive momentum in the company’s U.S. operations by the end of the analyzed period.
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).
- International Countries Net Sales
- The net sales in international countries exhibited a fluctuating pattern over the five-year period. Starting at approximately $4.73 billion in 2017, there was a significant increase to about $6.62 billion in 2018. However, sales slightly declined to $6.57 billion in 2019 and further reduced to $6.11 billion in 2020. In 2021, there was a notable rebound with sales rising sharply to $8.43 billion, representing the highest value in the analyzed period.
- United States Net Sales
- Within the United States, net sales showed more variability. The sales increased from $2.68 billion in 2017 to $2.97 billion in 2018. Following this, there was a marked decline to $2.33 billion in 2019. A moderate recovery occurred in 2020, with sales increasing to $2.57 billion, followed by a significant jump in 2021 reaching $3.93 billion. This final figure represents the peak sales volume for the US segment in the period under review.
- Consolidated Net Sales
- The consolidated net sales summarizing both geographic segments reveal an overall upward trend with some fluctuations. Beginning at $7.41 billion in 2017, consolidated sales rose to $9.59 billion in 2018, declined slightly to $8.91 billion in 2019, and experienced a modest decrease to $8.68 billion in 2020. The year 2021 saw a substantial increase, with consolidated net sales reaching $12.36 billion, the highest level recorded during the period.
- Overall Observations
- Both international and US net sales experienced growth overall but with interim declines, particularly in 2019 and 2020. The significant increases in 2021 suggest a recovery or expansion phase post-2020. The international segment consistently contributes a larger share to total sales compared to the US segment, although the US portion also demonstrated strong growth in the final year. The combined data indicate increased market activity or effective business strategies implemented during the final year, contributing to record consolidated sales figures.
Long-lived assets
Mosaic Co., long-lived assets by geographic area
US$ 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).
The analysis of the long-lived assets across geographic areas over the five-year period reveals distinct trends in the international and United States segments, as well as in the consolidated totals.
- International Countries
- There is a consistent upward trend in long-lived assets held in international countries from 2017 through 2021. The value increased steadily from approximately $5.89 billion in 2017 to about $8.31 billion in 2021. The growth appears to decelerate slightly towards the end of the period, but overall the segment exhibits clear expansion.
- United States
- The United States segment shows a different pattern. Starting at roughly $6.18 billion in 2017, the value increased to a peak of about $7.06 billion in 2018, followed by a decline in the subsequent years through 2020, reaching a low point near $5.69 billion. In 2021, a recovery occurs with assets rising again to approximately $6.23 billion. This trend indicates volatility and some contraction after 2018, before partial recuperation.
- Consolidated Totals
- The consolidated long-lived assets, which combine both geographic areas, show steady growth throughout the entire period. From approximately $12.07 billion in 2017, the total climbs steadily each year, reaching about $14.54 billion in 2021. This trend suggests overall expansion in asset base, driven predominantly by the growth in the international segment, despite fluctuations in the United States segment.
Overall, the data reflects an expanding asset base with strong growth internationally, while domestic assets experienced a peak followed by decline and partial recovery. The consolidated totals reflect these area-specific patterns, resulting in continuous asset growth over the five-year span.