Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Mosaic Co., profitability 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).
- Gross Profit Margin
- The gross profit margin exhibited a generally upward trend from early 2018 through mid-2022. Starting at 12.3% in the first quarter of 2018, it increased steadily with minor fluctuations, reaching a low point near 7.15% in early 2020. From 2020 onward, there was a marked recovery and continuous improvement, peaking at 32.01% by mid-2022. This pattern suggests enhanced operational efficiency or improved pricing power in recent periods after a challenging downturn.
- Operating Profit Margin
- The operating profit margin followed a trajectory similar to the gross margin but with more pronounced volatility. It rose from 6.65% in early 2018 to a peak of approximately 11% by early 2019 before declining sharply into negative territory in late 2019 and through most of 2020, hitting a trough of -15.48% in the first quarter of 2020. After bottoming out, the margin rebounded strongly from late 2020 onward, reaching 27.79% by mid-2022. This indicates operational challenges during 2019-2020, possibly due to increased costs or reduced revenues, followed by a robust recovery.
- Net Profit Margin
- The net profit margin was generally negative or near zero in early periods, with several quarters showing losses between 2018 and 2020. A notable improvement began in the last quarter of 2020, transitioning from -13.04% to positive figures in 2021 and further increasing to 19.66% by mid-2022. This improvement in bottom-line profitability reflects both operational recovery and possible gains from non-operating activities or cost management.
- Return on Equity (ROE)
- ROE patterns mirror those of net margin, with early negative returns through much of 2018 to 2020, reaching the lowest point around -16.71% in early 2020. Following this, there was a substantial and consistent rise, achieving 27.7% by mid-2022. This indicates enhanced shareholder value and effective use of equity capital after a period of financial difficulty.
- Return on Assets (ROA)
- ROA displayed a gradual recovery similar to other profitability ratios but with generally lower absolute values. Negative returns up to mid-2020 were followed by positive growth, reaching 13.57% by the middle of 2022. This suggests improved asset utilization and overall efficiency in generating profits from assets over time.
- Overall Financial Trends
- The data reflects a company initially experiencing profitability challenges from 2018 through the first half of 2020, likely influenced by external or internal adversities. From late 2020 onward, there is a clear and sustained recovery evident across all key profitability metrics. Gross and operating profit margins, net income, ROE, and ROA show strong upward trajectories, indicating improved cost control, effective management strategies, and enhanced operational performance. The substantial margin recovery and return ratios in 2021-2022 suggest a return to solid financial health and heightened profitability.
Return on Sales
Return on Investment
Gross Profit Margin
Mosaic Co., gross profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Gross margin | 1,846,300) | 1,439,100) | 1,148,600) | 864,500) | 752,300) | 434,900) | 411,400) | 355,100) | 257,000) | 41,400) | 80,700) | 279,900) | 227,200) | 309,500) | 466,200) | 495,500) | 294,600) | 242,100) | ||||||
| Net sales | 5,373,100) | 3,922,300) | 3,841,000) | 3,418,600) | 2,800,700) | 2,297,100) | 2,457,400) | 2,381,500) | 2,044,700) | 1,798,100) | 2,076,300) | 2,753,400) | 2,176,900) | 1,899,700) | 2,520,500) | 2,928,100) | 2,205,000) | 1,933,700) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Gross profit margin1 | 32.01% | 30.07% | 25.90% | 22.45% | 19.66% | 15.89% | 12.27% | 8.85% | 7.60% | 7.15% | 10.07% | 13.72% | 15.73% | 16.39% | 15.63% | 14.33% | 12.87% | 12.30% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 41.68% | 42.42% | 43.03% | 43.89% | 44.16% | 43.80% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 41.01% | 41.82% | 42.83% | 44.69% | 46.36% | 47.19% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
Gross profit margin = 100
× (Gross marginQ2 2022
+ Gross marginQ1 2022
+ Gross marginQ4 2021
+ Gross marginQ3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × (1,846,300 + 1,439,100 + 1,148,600 + 864,500)
÷ (5,373,100 + 3,922,300 + 3,841,000 + 3,418,600)
= 32.01%
2 Click competitor name to see calculations.
- Gross Margin Trend
- The gross margin initially showed moderate fluctuations between 2018 and early 2019, reaching a peak of 495,500 thousand USD in the third quarter of 2018 before declining to a low of 80,700 thousand USD by the end of 2019. Following this trough, the gross margin demonstrated a strong upward trajectory starting in 2020, with particularly notable increases from mid-2021 onwards, culminating in a high of 1,846,300 thousand USD by mid-2022.
- Net Sales Pattern
- Net sales exhibited considerable volatility over the observed period. After peaking in the third quarter of 2018 at approximately 2.93 billion USD, sales declined through the end of 2019. From early 2020, net sales showed a consistent rise, with minor fluctuations, reaching a record value of 5.37 billion USD by mid-2022. This progression indicates recovery and significant growth in sales volume or pricing power over the last two years.
- Gross Profit Margin Analysis
- The gross profit margin percentage reflected an overall positive trend, beginning at relatively low levels around 12-15% during 2018 and 2019. The margin declined sharply in late 2019 and early 2020, falling to as low as 7.15%. However, from mid-2020 onward, there was a steady and pronounced improvement, with the margin exceeding 30% by mid-2022. This rise suggests enhanced operational efficiency, improved cost management, or a favorable product mix contributing to increased profitability.
- Overall Insights
- The data reveals a recovery phase following a period of decreased profitability and sales around late 2019 to early 2020. The company has since made substantial progress in both sales and profit margins, indicating effective strategic or market responses. The simultaneous increase in net sales and gross profit margin is indicative of robust business performance and improved profitability, suggesting a strengthening competitive position.
Operating Profit Margin
Mosaic Co., operating profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Operating earnings (loss) | 1,674,200) | 1,255,800) | 969,700) | 701,600) | 484,000) | 313,200) | 294,800) | 98,500) | 85,800) | (66,200) | (1,194,600) | 139,500) | (241,900) | 202,100) | 258,000) | 393,300) | 196,300) | 80,700) | ||||||
| Net sales | 5,373,100) | 3,922,300) | 3,841,000) | 3,418,600) | 2,800,700) | 2,297,100) | 2,457,400) | 2,381,500) | 2,044,700) | 1,798,100) | 2,076,300) | 2,753,400) | 2,176,900) | 1,899,700) | 2,520,500) | 2,928,100) | 2,205,000) | 1,933,700) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Operating profit margin1 | 27.79% | 24.40% | 19.98% | 16.34% | 11.98% | 8.63% | 4.76% | -12.97% | -11.94% | -15.48% | -12.29% | 3.83% | 6.42% | 10.99% | 9.68% | 8.71% | 7.52% | 6.65% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 14.40% | 16.53% | 16.19% | 15.71% | 15.03% | 13.70% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 11.94% | 12.49% | 12.83% | 13.96% | 15.32% | 15.63% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
Operating profit margin = 100
× (Operating earnings (loss)Q2 2022
+ Operating earnings (loss)Q1 2022
+ Operating earnings (loss)Q4 2021
+ Operating earnings (loss)Q3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × (1,674,200 + 1,255,800 + 969,700 + 701,600)
÷ (5,373,100 + 3,922,300 + 3,841,000 + 3,418,600)
= 27.79%
2 Click competitor name to see calculations.
- Operating Earnings (Loss)
- The operating earnings demonstrate considerable volatility over the analyzed periods. From March 2018 to December 2018, earnings increased notably, peaking at 393,300 thousand USD in September 2018 before slightly decreasing. However, in 2019, there is a marked fluctuation with a significant loss recorded in June 2019 (-241,900 thousand USD) and a substantial loss in December 2019 (-1,194,600 thousand USD). The performance began to recover in 2020, showing positive operating earnings by the year-end at 294,800 thousand USD and continued growth through 2021 and into 2022. By June 2022, operating earnings reached 1,674,200 thousand USD, reflecting a strong upward trend in profitability.
- Net Sales
- Net sales follow a generally upward trajectory with some fluctuations. Sales rose from 1,933,700 thousand USD in March 2018, peaking at 2,928,100 thousand USD in September 2018 before dipping toward the end of 2018 and early 2019. From mid-2019, sales showed signs of recovery and steady growth, with notable increases beginning in late 2020. By June 2022, net sales had significantly increased to 5,373,100 thousand USD, nearly doubling the earlier figures. This robust sales growth supports the improving earnings trend.
- Operating Profit Margin
- The operating profit margin exhibited strong fluctuations that parallel the operating earnings trend. The margin improved from 6.65% in March 2018 to a high of 10.99% in March 2019, despite fluctuations in the middle quarters of 2019, including a sharp decline to negative margins in the latter part of 2019 and through much of 2020. Negative margins as low as -15.48% were recorded in March 2020. From late 2020 onward, the margin began a consistent recovery, rising steadily each quarter into 2022. By June 2022, the operating profit margin had reached a peak of 27.79%, indicating a notable enhancement in operational efficiency and profitability.
- Summary of Trends and Insights
- The data reveals a challenging period around late 2019 and throughout most of 2020, with significant operating losses and negative profit margins despite still generating substantial sales. This suggests elevated operating costs or adverse conditions impacting profitability during that time. Subsequent quarters show a strong recovery, driven by significant increases in net sales and improving operating margins, culminating in record profitability levels by mid-2022. The positive correlation between increasing net sales and expanding operating margins in the latter period signifies improved cost management and operational leverage. Overall, the financial outlook has shifted from volatility and losses to robust growth and enhanced profitability over the observed timeframe.
Net Profit Margin
Mosaic Co., net profit margin 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net earnings (loss) attributable to Mosaic | 1,035,900) | 1,182,000) | 664,800) | 371,900) | 437,200) | 156,700) | 827,900) | (6,200) | 47,400) | (203,000) | (921,000) | (44,100) | (233,100) | 130,800) | 112,300) | 247,500) | 67,900) | 42,300) | ||||||
| Net sales | 5,373,100) | 3,922,300) | 3,841,000) | 3,418,600) | 2,800,700) | 2,297,100) | 2,457,400) | 2,381,500) | 2,044,700) | 1,798,100) | 2,076,300) | 2,753,400) | 2,176,900) | 1,899,700) | 2,520,500) | 2,928,100) | 2,205,000) | 1,933,700) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| Net profit margin1 | 19.66% | 18.99% | 13.20% | 16.35% | 14.25% | 11.17% | 7.67% | -13.04% | -12.92% | -15.91% | -11.98% | -0.36% | 2.70% | 5.85% | 4.90% | -0.80% | -1.14% | -0.82% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 10.88% | 12.66% | 12.42% | 11.99% | 11.37% | 10.48% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 8.45% | 9.00% | 9.35% | 10.00% | 11.05% | 11.23% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
Net profit margin = 100
× (Net earnings (loss) attributable to MosaicQ2 2022
+ Net earnings (loss) attributable to MosaicQ1 2022
+ Net earnings (loss) attributable to MosaicQ4 2021
+ Net earnings (loss) attributable to MosaicQ3 2021)
÷ (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
= 100 × (1,035,900 + 1,182,000 + 664,800 + 371,900)
÷ (5,373,100 + 3,922,300 + 3,841,000 + 3,418,600)
= 19.66%
2 Click competitor name to see calculations.
- Net earnings (loss) attributable to Mosaic
- The net earnings display significant volatility over the analyzed periods. Initial quarters exhibit moderate positive earnings, peaking notably in September 2018 at 247.5 million USD. However, this is followed by a sharp decline beginning in March 2019, with losses reported in multiple quarters, including a substantial loss of 921 million USD by December 2019. A strong recovery occurs from March 2020 onwards, with alternating positive and negative earnings, culminating in a significant increase to 1.18 billion USD by June 2022. This pattern suggests periods of considerable operational or market challenges, followed by strong rebounds.
- Net sales
- Net sales present an overall upward trend across the periods. Starting at approximately 1.93 billion USD in March 2018, net sales increase with some fluctuations, reaching 5.37 billion USD by June 2022. Notable dips are observed in early 2019 and 2020, but these are followed by strong growth phases, particularly throughout 2021 and the first half of 2022. This indicates expanding revenue-generating capacity and possibly increased market demand or pricing power in later periods.
- Net profit margin
- Net profit margin mirrors the earnings volatility but shows a marked improvement over time. Early periods exhibit negative margins, reaching as low as -15.91% in March 2020, reflecting unprofitable quarters. Starting from December 2020, margins recover into positive territory and show a consistent upward trajectory, peaking at 19.66% in June 2022. This improvement suggests enhanced operational efficiency, cost management, or favorable pricing conditions allowing the company to convert a larger portion of sales into profit.
- Overall insights
- The data highlights a challenging environment from late 2018 through 2020, characterized by losses and shrinking profit margins despite relatively stable sales. Recovery commencing late 2020 is driven by increased sales and improved profitability. The strong positive trend in both net earnings and profit margin by mid-2022 indicates successful strategic or market adaptations, contributing to substantial financial strengthening.
Return on Equity (ROE)
Mosaic Co., ROE 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net earnings (loss) attributable to Mosaic | 1,035,900) | 1,182,000) | 664,800) | 371,900) | 437,200) | 156,700) | 827,900) | (6,200) | 47,400) | (203,000) | (921,000) | (44,100) | (233,100) | 130,800) | 112,300) | 247,500) | 67,900) | 42,300) | ||||||
| Total Mosaic stockholders’ equity | 11,751,300) | 11,638,400) | 10,604,100) | 10,420,400) | 10,338,000) | 9,624,200) | 9,581,400) | 8,532,800) | 8,493,000) | 8,386,200) | 9,185,500) | 10,100,400) | 10,473,000) | 10,601,200) | 10,397,300) | 10,441,600) | 10,196,400) | 10,455,000) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROE1 | 27.70% | 22.82% | 15.38% | 17.21% | 13.69% | 10.66% | 6.95% | -12.69% | -13.20% | -16.71% | -11.62% | -0.34% | 2.46% | 5.27% | 4.52% | -0.70% | -0.92% | -0.61% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 8.95% | 9.36% | 8.69% | 8.05% | 7.19% | 6.29% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 78.89% | 81.71% | 76.50% | 73.13% | 76.43% | 68.81% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
ROE = 100
× (Net earnings (loss) attributable to MosaicQ2 2022
+ Net earnings (loss) attributable to MosaicQ1 2022
+ Net earnings (loss) attributable to MosaicQ4 2021
+ Net earnings (loss) attributable to MosaicQ3 2021)
÷ Total Mosaic stockholders’ equity
= 100 × (1,035,900 + 1,182,000 + 664,800 + 371,900)
÷ 11,751,300 = 27.70%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several significant trends in the company's performance over the observed periods.
- Net Earnings (Loss) Attributable to Mosaic
- Net earnings display considerable volatility, with some quarters showing substantial losses followed by remarkable recoveries. Initially, net earnings were positive and increasing, peaking in September 2018. However, there is a pronounced decline starting March 2019, culminating in steep losses during late 2019 and early 2020, particularly a significant loss in December 2019. From the second quarter of 2020 onwards, net earnings recover sharply, reaching unprecedented highs by the end of 2020 and continuing strong into 2021 and 2022. This pattern indicates a challenging period around 2019-2020, followed by considerable operational or market improvements leading to much higher profitability.
- Total Mosaic Stockholders’ Equity
- Stockholders' equity demonstrates a general upward trend over the entire period. Despite a slight decline during late 2019 and early 2020 coinciding with the negative earnings period, equity levels recover and show steady growth from late 2020 onwards. This improvement suggests either retained earnings accumulation, capital infusions, or positive revaluations contributing to shareholders' equity enhancement. The equity value rises notably from 2021 and peaks in mid-2022 at the highest point within the dataset.
- Return on Equity (ROE)
- ROE follows a trajectory reflective of net earnings trends. It starts negatively in early periods, slightly improving but still negative through much of 2018 and 2019, reaching a low point around late 2019 and early 2020 with substantial negative percentages. A marked rebound occurs beginning late 2020, corresponding with the recovery in net earnings. ROE ascends into positive territory, progressively increasing and reaching strong double-digit percentages by 2021 and 2022. This development indicates enhanced efficiency in generating earnings from equity, reflecting improved profitability and potentially better capital management.
In summary, the company experienced a turbulent phase with sizable losses and declining equity in the 2019-early 2020 timeframe. This was followed by a robust recovery period, characterized by significantly improved net earnings, growth in stockholders' equity, and stronger returns on equity. The recent trends suggest that the company has strengthened its financial position and profitability considerably by mid-2022.
Return on Assets (ROA)
Mosaic Co., ROA 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Net earnings (loss) attributable to Mosaic | 1,035,900) | 1,182,000) | 664,800) | 371,900) | 437,200) | 156,700) | 827,900) | (6,200) | 47,400) | (203,000) | (921,000) | (44,100) | (233,100) | 130,800) | 112,300) | 247,500) | 67,900) | 42,300) | ||||||
| Total assets | 23,985,600) | 23,423,100) | 22,036,400) | 21,081,500) | 21,473,500) | 19,902,100) | 19,789,800) | 18,851,600) | 19,020,600) | 18,975,500) | 19,298,500) | 20,440,100) | 20,643,900) | 20,445,300) | 20,119,200) | 20,414,700) | 20,398,000) | 20,452,300) | ||||||
| Profitability Ratio | ||||||||||||||||||||||||
| ROA1 | 13.57% | 11.34% | 7.40% | 8.51% | 6.59% | 5.15% | 3.37% | -5.74% | -5.89% | -7.38% | -5.53% | -0.17% | 1.25% | 2.73% | 2.34% | -0.36% | -0.46% | -0.31% | ||||||
| Benchmarks | ||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||
| Linde plc | 4.56% | 4.86% | 4.69% | 4.24% | 3.90% | 3.42% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Sherwin-Williams Co. | 7.96% | 8.40% | 9.02% | 9.49% | 10.58% | 10.37% | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
1 Q2 2022 Calculation
ROA = 100
× (Net earnings (loss) attributable to MosaicQ2 2022
+ Net earnings (loss) attributable to MosaicQ1 2022
+ Net earnings (loss) attributable to MosaicQ4 2021
+ Net earnings (loss) attributable to MosaicQ3 2021)
÷ Total assets
= 100 × (1,035,900 + 1,182,000 + 664,800 + 371,900)
÷ 23,985,600 = 13.57%
2 Click competitor name to see calculations.
The financial results indicate significant volatility in net earnings attributable to the company over the observed periods, characterized by sharp fluctuations and episodes of substantial losses followed by strong recoveries. Initially, net earnings ranged moderately but experienced a pronounced decline in the quarters of mid and late 2019, culminating in a substantial loss by the fourth quarter of that year. Early 2020 continued to see negative earnings, though with some improvement as mid-year values turned positive again and fluctuation continued towards the end of the year. From 2021 onward, net earnings showed a robust upward trend, achieving consistent positive figures with notable peaks in early 2022.
Total assets demonstrated moderate variation but generally exhibited a gradual increasing trend over the course of the analyzed timeframe. While there were slight declines observed in late 2019 and early 2020, overall asset levels rose steadily from 2021 forward, reaching their highest values at the mid-2022 endpoint.
The return on assets (ROA) metric reflects the company's earnings efficiency relative to its asset base and mirrors the patterns seen in net earnings. Negative ROA values dominated much of 2019 and the first half of 2020, indicating periods of loss and reduced profitability. However, starting in late 2020 and continuing through 2021 and into 2022, ROA improved significantly, surpassing 10% by mid-2022, suggesting enhanced profitability and more effective utilization of assets.
- Net Earnings (Loss) Attributable to the Company
- Exhibited high volatility with a transition from modest earnings in early 2018 to sharp losses through 2019, followed by recovery and strong gains from 2020 onwards.
- Peak losses occurred in late 2019, exceeding $900 million, while peak earnings reached over $800 million by the end of 2020.
- Positive trend from 2021 to mid-2022 with steady growth in profitability.
- Total Assets
- Generally stable with minor fluctuations until 2020, followed by a steady increase through 2022.
- Asset base grew from approximately $19 billion in early 2020 to nearly $24 billion by mid-2022, indicating expansion or accumulation of resources.
- Return on Assets (ROA)
- Negative ROA percentages during 2019 and early 2020 align with the loss periods, reflecting reduced operational efficiency.
- From late 2020 onward, ROA reversed to positive territory and improved substantially, reaching over 13% by June 2022.
- This increase signals improved profitability per unit of asset, indicating an overall strengthening financial position.