Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
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Profitability Ratios (Summary)
Mosaic Co., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin exhibited fluctuations over the five-year period. Beginning at 11.37% in 2017, it increased to 15.63% in 2018, then declined to 10.07% in 2019. A modest recovery to 12.27% was observed in 2020, followed by a significant increase to 25.9% in 2021. This indicates an overall improvement in the efficiency of production or cost management, particularly notable in the last year.
- Operating Profit Margin
- Operating profit margin showed greater volatility. It rose from 6.29% in 2017 to a peak of 9.68% in 2018, then experienced a sharp downturn to -12.29% in 2019, indicating substantial operating losses that year. A recovery phase began in 2020 with a margin of 4.76%, culminating in a strong improvement to 19.98% in 2021. This trajectory reflects challenges impacting operating income around 2019, followed by an effective turnaround.
- Net Profit Margin
- The net profit margin mirrored the volatility seen in operating profit margin, starting negative at -1.45% in 2017, improving to 4.9% in 2018, but dropping again to -11.98% in 2019. The company recovered to positive margins of 7.67% in 2020 and further to 13.2% in 2021, indicating improved bottom-line profitability after a difficult period in 2019.
- Return on Equity (ROE)
- ROE followed a similar pattern to net margin, with negative returns in 2017 (-1.11%) and 2019 (-11.62%), indicating losses being reflected in shareholders’ equity returns. Positive values in 2018 (4.52%), 2020 (6.95%), and a significant increase in 2021 (15.38%) demonstrate enhanced profitability and value generation for equity holders in recent years.
- Return on Assets (ROA)
- ROA was negative in 2017 (-0.58%) and 2019 (-5.53%), reflecting inefficient asset utilization during those periods. It improved notably in 2018 (2.34%), continued gaining in 2020 (3.37%), and reached 7.4% in 2021, indicating better asset management and profitability growth over time.
- Overall Trends
- The data reveals a challenging year in 2019 across profitability and return metrics, with negative margins and returns. By contrast, 2021 shows a marked recovery and significant growth, particularly in gross profit margin and operating profit margin, suggesting improved operational efficiency and profitability. Returns to equity and assets follow this upward trend, indicating strengthened financial performance and effective use of resources leading to enhanced shareholder value.
Return on Sales
Return on Investment
Gross Profit Margin
Mosaic Co., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross margin | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
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
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Gross Margin
- The gross margin exhibits fluctuating growth over the five-year period. It starts at 842,800 thousand USD in 2017, peaks to 1,498,400 thousand USD in 2018, declines again in 2019 to 897,300 thousand USD, then shows moderate recovery in 2020 to 1,064,900 thousand USD, followed by a significant increase in 2021 to 3,200,300 thousand USD. This suggests volatility with a strong upward surge in the final year.
- Net Sales
- Net sales follow a similar fluctuating pattern with an overall upward trend. Beginning at 7,409,400 thousand USD in 2017, net sales rise to 9,587,300 thousand USD in 2018, slightly decrease to 8,906,300 thousand USD in 2019, continue a mild decline to 8,681,700 thousand USD in 2020, and then increase substantially in 2021 to 12,357,400 thousand USD. The data reflects variability in sales performance with notable recovery and growth in the year 2021.
- Gross Profit Margin (%)
- The gross profit margin percentage reveals notable variability. An initial figure of 11.37% in 2017 increases to 15.63% in 2018, decreases sharply to 10.07% in 2019, then slightly recovers to 12.27% in 2020, and surges to a high of 25.9% in 2021. This indicates improving efficiency or pricing power predominantly in the final year, despite earlier fluctuations.
- Summary Insights
- Both gross margin and net sales demonstrate variability year-over-year, with a pronounced improvement in 2021 where both figures show significant increases. The gross profit margin percentage mirrors this trend, indicating enhanced profitability or cost management in the latest period. The trends suggest the company faced periodical challenges between 2018 and 2020 but experienced a strong operational and financial performance rebound in 2021.
Operating Profit Margin
Mosaic Co., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating earnings (loss) | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| Operating Profit Margin, Sector | ||||||
| Chemicals | ||||||
| Operating Profit Margin, Industry | ||||||
| Materials | ||||||
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
Operating profit margin = 100 × Operating earnings (loss) ÷ Net sales
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating earnings (loss)
- The operating earnings exhibited substantial volatility over the observed period. Commencing at $465.7 million in 2017, earnings more than doubled to $928.3 million in 2018, indicating a significant improvement in profitability. However, this trend reversed in 2019, where the company experienced a considerable operating loss of approximately $1.09 billion, demonstrating a notable downturn. The following year, 2020, saw a recovery with operating earnings returning to a positive figure of $412.9 million. In 2021, the company achieved its highest operating earnings in the dataset, reaching $2.47 billion, reflecting a strong rebound and potentially improved operational efficiency or market conditions.
- Net sales
- Net sales displayed a generally upward trajectory across the period under review, with some fluctuations. Starting at $7.41 billion in 2017, sales increased to $9.59 billion in 2018, indicating growth. In 2019, there was a decline to $8.91 billion, followed by a slight decrease to $8.68 billion in 2020. The year 2021 marked a significant surge to $12.36 billion, representing the highest sales figure in the dataset and suggesting strong market demand or expanded sales capacity in that year.
- Operating profit margin
- The operating profit margin mirrored the volatility observed in operating earnings. The margin improved from 6.29% in 2017 to 9.68% in 2018, highlighting enhanced profitability relative to sales. This positive trend reversed sharply in 2019, with the margin falling to -12.29%, reflecting the operating loss experienced that year. Margins recovered to 4.76% in 2020, indicating a return to profitability, though still below earlier peak levels. In 2021, the margin surged to 19.98%, the highest in the time series, demonstrating a substantial increase in profitability relative to net sales.
Net Profit Margin
Mosaic Co., net profit margin calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net earnings (loss) attributable to Mosaic | ||||||
| Net sales | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| Net Profit Margin, Sector | ||||||
| Chemicals | ||||||
| Net Profit Margin, Industry | ||||||
| Materials | ||||||
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 × ÷ =
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to Mosaic
- Net earnings exhibited notable volatility over the five-year period. Initially, there was a significant loss of approximately US$107.2 million at the end of 2017, followed by a strong recovery to a positive net earnings figure of US$470 million in 2018. However, 2019 saw a pronounced downturn with a net loss exceeding US$1 billion. In 2020, profitability returned, with net earnings of about US$666.1 million. This upward trend continued into 2021, reaching a peak net income of approximately US$1.63 billion, indicating a substantial improvement in profitability compared to previous years.
- Net Sales
- Net sales demonstrated a general upward trajectory, despite some fluctuations. Starting at around US$7.41 billion in 2017, sales increased substantially to nearly US$9.59 billion in 2018. There was a slight decline in 2019 and 2020, with values of approximately US$8.91 billion and US$8.68 billion, respectively. However, 2021 marked a significant jump to approximately US$12.36 billion, suggesting strong sales growth and market demand recovery or expansion in that year.
- Net Profit Margin
- The net profit margin reflected the earnings volatility and exhibited marked swings across the years. The margin was negative at -1.45% in 2017, turning positive to 4.9% in 2018, followed by a sharp decline to -11.98% in 2019. This negative margin corresponds with the substantial net loss recorded in the same year. The margin rebounded to 7.67% in 2020 and further improved dramatically to 13.2% in 2021. This indicates enhanced operational efficiency or favorable market conditions resulting in stronger profitability relative to sales.
Return on Equity (ROE)
Mosaic Co., ROE calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net earnings (loss) attributable to Mosaic | ||||||
| Total Mosaic stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| ROE, Sector | ||||||
| Chemicals | ||||||
| ROE, Industry | ||||||
| Materials | ||||||
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 × ÷ =
2 Click competitor name to see calculations.
The financial data indicates significant variability in net earnings over the five-year period. In 2017, the company experienced a net loss of approximately $107.2 million, which reversed to a net gain of $470 million in 2018. However, 2019 saw a substantial downturn with a net loss increasing to approximately $1.067 billion. The company then rebounded in 2020 and 2021, achieving net earnings of about $666.1 million and $1.631 billion, respectively. This pattern illustrates a volatile earnings performance with sharp fluctuations, including two notable loss years and two strong recovery years.
The total stockholders’ equity reflects a relatively stable and generally upward trend during the same period. Starting at $9.618 billion in 2017, equity increased to approximately $10.397 billion in 2018. It declined to $9.185 billion in 2019, coinciding with the steepest net loss year, before rising again to $9.581 billion in 2020 and further to $10.604 billion in 2021. This movement suggests that equity was somewhat resilient despite earnings volatility, recovering after the significant dip in 2019.
Return on equity (ROE) mirrors the net earnings trend, with negative performance of -1.11% in 2017, improving to 4.52% in 2018. The ROE dropped sharply to -11.62% in 2019, indicating a loss of shareholder value in that year. Recovery is evident in 2020 with ROE rising to 6.95%, and further strengthening to 15.38% in 2021, reflecting improved profitability and effective utilization of equity capital.
- Summary of key trends:
- - Earnings and ROE both display significant volatility, with 2019 marking the lowest point.
- - The recovery in 2020 and 2021 demonstrates improved operational performance and profitability.
- - Stockholders’ equity remained relatively stable, showing resilience despite earnings fluctuations.
- - The upward trend in ROE in the final years indicates enhanced efficiency in generating returns for shareholders.
Return on Assets (ROA)
Mosaic Co., ROA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net earnings (loss) attributable to Mosaic | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Linde plc | ||||||
| Sherwin-Williams Co. | ||||||
| ROA, Sector | ||||||
| Chemicals | ||||||
| ROA, Industry | ||||||
| Materials | ||||||
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 × ÷ =
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to Mosaic
- The net earnings demonstrate significant volatility over the five-year period. Starting with a loss of $107.2 million in 2017, the company rebounded to a positive earnings figure of $470 million in 2018. However, 2019 saw a sharp reversal to a substantial loss of $1.067 billion. Subsequently, the company achieved positive net earnings again in 2020 and 2021, with a marked increase to $666.1 million and further to $1.63 billion, respectively. This pattern indicates challenges in earnings stability but an overall recovery trend in the latter years.
- Total Assets
- Total assets showed a generally upward trend, with some fluctuations. The asset base started at approximately $18.63 billion in 2017, increased to $20.12 billion in 2018, then slightly decreased to $19.3 billion in 2019. From 2019 onwards, total assets recovered steadily, reaching $19.79 billion in 2020 and rising significantly to $22.04 billion by the end of 2021. The growth in total assets in the final two years suggests investment or asset accumulation activity aligned with improved profitability.
- Return on Assets (ROA)
- The return on assets metric closely follows the net earnings pattern, reflecting profitability relative to asset base. ROA was negative at -0.58% in 2017, improved to a positive 2.34% in 2018, then deteriorated sharply to -5.53% in 2019. It rebounded again to 3.37% in 2020, and showed strong improvement to 7.4% in 2021. This trend exemplifies the company's fluctuating profitability but also highlights significant improvement in asset efficiency and earnings generation in recent years.
- Summary
- Overall, the company experienced significant earnings volatility with a peak loss in 2019 followed by strong recoveries in 2020 and 2021. The asset base expanded over the period, particularly in the final two years, supporting improved operational scale or capacity. The return on assets aligns with income patterns, indicating the company has enhanced its profitability and asset utilization efficiency after the 2019 downturn. Continued monitoring of earnings stability alongside asset growth is advisable to assess sustainable performance.