Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Mosaic Co., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
- Current ratio trends
- The current ratio demonstrates a generally declining trend over the analyzed period. Starting at a high of 1.97 in March 2017, it fluctuated somewhat but gradually decreased to about 1.11-1.32 by mid-2022. Notably, there was a peak of 2.27 at the end of 2017, followed by a consistent downward movement through 2019 and 2020, reaching its lowest around 1.11 in early 2021. Slight recoveries occurred thereafter but the ratio remained below early-period levels. Overall, this suggests a moderate decline in the company’s short-term liquidity over time.
- Quick ratio trends
- The quick ratio shows more volatility compared to the current ratio. Initially, it was 0.77 in March 2017, dropped to around 0.65-0.68 in mid-2017, then spiked sharply to 1.38 at the end of 2017. After that spike, it fell and stabilized around 0.44 to 0.75 from 2018 through 2020. The ratio generally stayed between 0.4 and 0.6 during this period, followed by a dip to approximately 0.46 in early 2021 and a slight rise to 0.48-0.55 by mid-2022. This pattern indicates fluctuations in the company's ability to cover current liabilities with its most liquid assets but overall reflects a relatively constrained quick liquidity position.
- Cash ratio trends
- The cash ratio exhibits the most variability and lowest levels among the liquidity ratios. It started at 0.41 in March 2017, dropped to around 0.3-0.4 during most of 2017-2018, and surged to 1.06 at the end of 2017. Subsequently, it declined sharply and stabilized at very low levels, ranging mostly between 0.15 and 0.34 from 2019 through mid-2022. The lowest recorded values appear from late 2021 through mid-2022, with figures as low as 0.15. This indicates a declining availability of cash and cash-equivalents relative to current liabilities, highlighting potential challenges in immediate liquidity.
- Overall liquidity insights
- All three liquidity ratios reveal a decrease in the company’s short-term financial strength over the analyzed timeframe. The initial high points, particularly the spikes at the end of 2017, are not sustained in subsequent quarters. There is a general downward trajectory, with the current ratio falling below the typical safe benchmark of 2.0, the quick ratio mostly below 1.0, and the cash ratio remaining well below 0.5 in recent periods. This pattern suggests growing pressure on the company’s liquidity and a reduced buffer to cover short-term obligations solely with liquid or near-liquid assets.
Current Ratio
Mosaic Co., current ratio calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Current assets | 7,298,700) | 6,225,400) | 5,325,300) | 4,599,100) | 4,987,600) | 3,727,300) | 3,521,200) | 3,748,800) | 4,055,600) | 4,221,100) | 3,718,200) | 4,125,300) | 4,228,800) | 4,146,300) | 4,237,000) | 4,178,000) | 4,170,400) | 3,841,400) | 4,616,500) | 3,375,500) | 3,337,200) | 3,216,200) | |||||||
| Current liabilities | 5,632,000) | 5,051,700) | 4,787,400) | 3,494,500) | 4,137,900) | 3,355,000) | 3,146,500) | 2,865,700) | 3,112,900) | 3,269,000) | 2,591,700) | 2,724,500) | 2,526,900) | 2,397,200) | 2,483,700) | 2,502,400) | 2,594,900) | 2,220,500) | 2,031,100) | 1,897,800) | 1,872,000) | 1,633,400) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Current ratio1 | 1.30 | 1.23 | 1.11 | 1.32 | 1.21 | 1.11 | 1.12 | 1.31 | 1.30 | 1.29 | 1.43 | 1.51 | 1.67 | 1.73 | 1.71 | 1.67 | 1.61 | 1.73 | 2.27 | 1.78 | 1.78 | 1.97 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | 0.74 | 0.84 | 0.74 | 0.81 | 0.71 | 0.74 | 0.80 | 0.83 | 0.80 | 0.74 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Sherwin-Williams Co. | 0.87 | 0.88 | 0.88 | 0.83 | 0.84 | 0.90 | 1.00 | 1.19 | 1.09 | 0.94 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,298,700 ÷ 5,632,000 = 1.30
2 Click competitor name to see calculations.
- Current Assets
- Current assets experienced fluctuating values over the examined quarters, initially showing an upward trend from approximately 3.22 billion USD in March 2017 to a peak near 4.62 billion USD at year-end 2017. This was followed by a moderate decline through 2018, stabilizing around 4.14 billion to 4.23 billion USD. A notable decline occurred in 2019 through the end of 2020, with values decreasing to about 3.52 billion USD by December 2020. Beginning in early 2021, current assets exhibited a strong recovery and consistent growth, reaching over 7.29 billion USD by mid-2022, the highest level in the observed period.
- Current Liabilities
- Current liabilities showed a gradual increase from roughly 1.63 billion USD in early 2017 to a plateau between 2.48 billion and 2.59 billion USD throughout 2017 and 2018. During 2019 and into 2020, liabilities increased more sharply, peaking near 3.27 billion USD by March 2020 before some fluctuations occurred throughout the remainder of 2020. From 2021 onward, current liabilities rose significantly, surpassing 5.63 billion USD by mid-2022, indicating an elevated level of short-term obligations relative to earlier years.
- Current Ratio
- The current ratio, representing the ability to cover short-term liabilities with short-term assets, shows several distinct phases. It started relatively high at 1.97 in March 2017, declining steadily to around 1.29 by the first half of 2020, reflecting a tightening liquidity position. The lowest point occurred around December 2020 with a ratio near 1.12, indicating reduced short-term financial flexibility. From 2021 onwards, the ratio showed modest improvement with slight fluctuations, attaining approximately 1.30 by mid-2022, yet it remained below the levels observed before 2019, signaling a cautious liquidity stance despite increased current assets.
Quick Ratio
Mosaic Co., quick ratio calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 839,100) | 881,900) | 769,500) | 842,800) | 1,417,600) | 692,000) | 574,000) | 923,000) | 1,073,300) | 1,069,200) | 519,100) | 641,100) | 401,900) | 384,600) | 847,700) | 1,029,900) | 1,035,300) | 659,400) | 2,153,500) | 685,700) | 660,600) | 675,300) | |||||||
| Receivables, net, including affiliate receivables | 2,251,900) | 1,530,100) | 1,531,900) | 1,081,500) | 930,500) | 851,600) | 881,100) | 794,600) | 689,600) | 723,000) | 803,900) | 801,400) | 711,700) | 792,000) | 838,500) | 834,900) | 624,900) | 708,400) | 642,600) | 592,300) | 548,000) | 577,800) | |||||||
| Total quick assets | 3,091,000) | 2,412,000) | 2,301,400) | 1,924,300) | 2,348,100) | 1,543,600) | 1,455,100) | 1,717,600) | 1,762,900) | 1,792,200) | 1,323,000) | 1,442,500) | 1,113,600) | 1,176,600) | 1,686,200) | 1,864,800) | 1,660,200) | 1,367,800) | 2,796,100) | 1,278,000) | 1,208,600) | 1,253,100) | |||||||
| Current liabilities | 5,632,000) | 5,051,700) | 4,787,400) | 3,494,500) | 4,137,900) | 3,355,000) | 3,146,500) | 2,865,700) | 3,112,900) | 3,269,000) | 2,591,700) | 2,724,500) | 2,526,900) | 2,397,200) | 2,483,700) | 2,502,400) | 2,594,900) | 2,220,500) | 2,031,100) | 1,897,800) | 1,872,000) | 1,633,400) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Quick ratio1 | 0.55 | 0.48 | 0.48 | 0.55 | 0.57 | 0.46 | 0.46 | 0.60 | 0.57 | 0.55 | 0.51 | 0.53 | 0.44 | 0.49 | 0.68 | 0.75 | 0.64 | 0.62 | 1.38 | 0.67 | 0.65 | 0.77 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | 0.56 | 0.65 | 0.55 | 0.63 | 0.52 | 0.56 | 0.59 | 0.64 | 0.61 | 0.54 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Sherwin-Williams Co. | 0.46 | 0.46 | 0.44 | 0.45 | 0.45 | 0.48 | 0.50 | 0.71 | 0.60 | 0.48 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,091,000 ÷ 5,632,000 = 0.55
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- The total quick assets have exhibited significant fluctuations over the analyzed periods. Initially, there was a relatively stable range around 1.2 to 1.3 million US dollars from March 2017 through September 2017, followed by a sharp spike to approximately 2.8 million at the end of 2017. Subsequently, the quick assets mostly ranged between 1.1 million and 1.8 million through 2020, with some decline noted in late 2020. Starting in 2021, there was a general upward trend reaching over 3 million US dollars by June 2022, indicating an improvement in liquid asset positions in recent quarters.
- Trend in Current Liabilities
- Current liabilities consistently increased over the period under review. Beginning around 1.6 million US dollars in early 2017, liabilities rose steadily each quarter, nearly doubling by the first half of 2022 when they exceeded 5.6 million US dollars. This persistent growth suggests increased short-term obligations, reflecting either expanded operations, greater short-term financing, or higher payables.
- Quick Ratio Analysis
- The quick ratio, which measures the company’s ability to cover its current liabilities with its most liquid assets, demonstrated considerable variability. It was below 1 across all periods, indicating that quick assets were insufficient to fully cover current liabilities at any point. The ratio reached a peak of 1.38 at the end of 2017 due to the spike in quick assets combined with relatively moderate liabilities. However, the ratio then declined sharply and generally stayed between 0.44 and 0.75 in subsequent periods, with a downward trend observed from 2019 through 2021, reaching lows near 0.46. A slight upward movement in the quick ratio is noted again by mid-2022 but remains below 1.
- Overall Financial Liquidity Assessment
- While total quick assets have increased substantially in more recent periods, this increase has been outpaced by the surge in current liabilities, leading to a consistently low quick ratio below benchmark levels considered safe for liquidity. This indicates potential liquidity risk, as the company may face challenges in meeting short-term liabilities with readily available assets. The temporary improvement in late 2017 was not sustained. From a financial stability perspective, attention to managing liabilities or enhancing liquid asset reserves may be warranted to improve short-term financial health.
Cash Ratio
Mosaic Co., cash ratio calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Cash and cash equivalents | 839,100) | 881,900) | 769,500) | 842,800) | 1,417,600) | 692,000) | 574,000) | 923,000) | 1,073,300) | 1,069,200) | 519,100) | 641,100) | 401,900) | 384,600) | 847,700) | 1,029,900) | 1,035,300) | 659,400) | 2,153,500) | 685,700) | 660,600) | 675,300) | |||||||
| Total cash assets | 839,100) | 881,900) | 769,500) | 842,800) | 1,417,600) | 692,000) | 574,000) | 923,000) | 1,073,300) | 1,069,200) | 519,100) | 641,100) | 401,900) | 384,600) | 847,700) | 1,029,900) | 1,035,300) | 659,400) | 2,153,500) | 685,700) | 660,600) | 675,300) | |||||||
| Current liabilities | 5,632,000) | 5,051,700) | 4,787,400) | 3,494,500) | 4,137,900) | 3,355,000) | 3,146,500) | 2,865,700) | 3,112,900) | 3,269,000) | 2,591,700) | 2,724,500) | 2,526,900) | 2,397,200) | 2,483,700) | 2,502,400) | 2,594,900) | 2,220,500) | 2,031,100) | 1,897,800) | 1,872,000) | 1,633,400) | |||||||
| Liquidity Ratio | |||||||||||||||||||||||||||||
| Cash ratio1 | 0.15 | 0.17 | 0.16 | 0.24 | 0.34 | 0.21 | 0.18 | 0.32 | 0.34 | 0.33 | 0.20 | 0.24 | 0.16 | 0.16 | 0.34 | 0.41 | 0.40 | 0.30 | 1.06 | 0.36 | 0.35 | 0.41 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | 0.24 | 0.31 | 0.21 | 0.32 | 0.21 | 0.27 | 0.27 | 0.35 | 0.33 | 0.26 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Sherwin-Williams Co. | 0.04 | 0.06 | 0.03 | 0.05 | 0.04 | 0.06 | 0.05 | 0.14 | 0.04 | 0.05 | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-K (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-Q (reporting date: 2017-03-31).
1 Q2 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 839,100 ÷ 5,632,000 = 0.15
2 Click competitor name to see calculations.
- Cash Assets Trend
- The total cash assets exhibit considerable fluctuations across the observed quarters. Initially, there is a stable range around 660,000 to 685,700 thousand USD from early 2017 until the third quarter of 2017, followed by a significant spike to over 2,153,500 thousand USD at the end of 2017. Subsequently, cash assets declined sharply and fluctuated mostly between approximately 384,600 and 1,073,300 thousand USD from 2018 through 2020. Starting in early 2021, a relatively higher range is observed, reaching up to 1,417,600 thousand USD in the middle of 2021 but declining again towards mid-2022 where the cash assets settle near 839,100 thousand USD.
- Current Liabilities Trend
- Current liabilities show a generally increasing trend throughout the period. Starting at 1,633,400 thousand USD at the beginning of 2017, liabilities rise steadily with some fluctuations and reach a peak of approximately 5,632,000 thousand USD by mid-2022. Notable increases occur particularly from 2020 onward, with significant jumps in the second half of 2021 and early 2022, indicating a marked growth in short-term obligations over time.
- Cash Ratio Analysis
- The cash ratio, representing the liquidity position by comparing cash assets to current liabilities, displays considerable variability and a generally declining trend over the period. Early in 2017, the ratio fluctuated around 0.35-1.06, with the highest value at the end of 2017 coinciding with the cash asset spike. Following this period, the cash ratio mostly decreases, frequently remaining below 0.4, and often declining to values around 0.15-0.24 from 2019 onward. By mid-2022, the cash ratio is at one of its lowest levels at 0.15, illustrating a reduced ability to cover current liabilities solely with cash assets.
- Overall Insights
- The data reflect a scenario where cash assets are highly variable without a clear upward or downward trend, while current liabilities consistently grow, particularly accelerating after 2020. This growing liability base, coupled with relatively stagnant or declining cash reserves, leads to a deterioration in liquidity as evidenced by the declining cash ratio. The decreasing cash ratio over time could signal increasing liquidity risk, suggesting attention to cash management and short-term financial obligations may be warranted.