Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Balance Sheet: Liabilities and Stockholders’ Equity
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- 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
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Short-term Activity Ratios (Summary)
Mosaic Co., short-term (operating) activity 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).
- Inventory Turnover
- The inventory turnover ratio showed moderate fluctuations over the observed periods. Beginning around 4.24 in March 2018, it dropped to approximately 2.94 by March 2022, indicating a decline in the frequency of inventory being sold and replaced. Peaks occurred around mid-2020, reaching close to 4.5, but the general trend towards the end suggests slower inventory movement.
- Receivables Turnover
- Receivables turnover exhibited variability with values generally between 7.35 and 13.38. A decreasing pattern was noticeable from early 2021, where the ratio steadily declined from about 10.68 to around 7.35 by June 2022. This suggests a lengthening period for collecting receivables, potentially impacting cash flow.
- Payables Turnover
- The payables turnover ratio fluctuated without a clear directional trend, with values oscillating between roughly 7.26 and 12.14. A notable low occurred in late 2021 (7.26), followed by a brief recovery and another decline. This variability indicates inconsistent payment pace to suppliers over time.
- Working Capital Turnover
- Working capital turnover demonstrated substantial variation, starting near 2.87 in early 2018 and increasing sharply in late 2020 and early 2021 to values above 20, peaking at 24.66. Subsequently, the ratio declined but remained elevated compared to earlier years. This may reflect improved efficiency in using working capital during certain periods, albeit with some volatility.
- Average Inventory Processing Period
- The average inventory processing period generally increased from approximately 86 days in early 2018 to over 120 days by mid-2022, indicating that inventory was held longer before being sold. There were minor reductions around 2020, but the overall trend suggests slower inventory turnover times.
- Average Receivable Collection Period
- This period remained relatively stable, mostly ranging from 27 to 37 days through 2018 to 2020. However, from 2021 onwards, there was a pronounced increase reaching up to 50 days by mid-2022, signaling slower collection of receivables in recent periods.
- Operating Cycle
- The operating cycle, which comprises the inventory processing and receivables collection periods, showed an upward trend from about 118 days in early 2018 to approximately 168 days by mid-2022. This lengthening of the cycle indicates a slower turnaround from inventory acquisition to cash collection over time.
- Average Payables Payment Period
- The payables payment period exhibited a gradual increase over the analysis period, moving from roughly 30 days in early 2018 to near 50 days by mid-2022, suggesting a tendency to extend payment terms with suppliers.
- Cash Conversion Cycle
- The cash conversion cycle started at 88 days early in 2018, fluctuated, and demonstrated an increasing pattern reaching a peak of 132 days by early 2022 before slightly declining. This lengthening cycle points to a slower conversion of investments in inventory and receivables into cash, which could affect liquidity.
Turnover Ratios
Average No. Days
Inventory Turnover
Mosaic Co., inventory turnover 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) | |||||||||||||||||||||||||||||
| Cost of goods sold | |||||||||||||||||||||||||||||
| Inventories | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Inventory turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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
Inventory turnover
= (Cost of goods soldQ2 2022
+ Cost of goods soldQ1 2022
+ Cost of goods soldQ4 2021
+ Cost of goods soldQ3 2021)
÷ Inventories
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The quarterly financial data reveals several notable trends concerning the cost of goods sold, inventories, and inventory turnover ratios over the observed periods.
- Cost of Goods Sold (COGS)
- COGS figures exhibit a generally upward trajectory over the period examined. Starting from approximately $1.45 billion in the first quarter of 2017, the cost shows fluctuations but maintains an increasing trend, notably accelerating towards the later years. By mid-2022, COGS reaches over $3.5 billion, representing a significant rise compared to earlier years. The data indicates seasonal and cyclical variations, with some quarters experiencing sharper increases. This pattern may reflect growth in production or sales volume, inflationary pressures, or changes in input prices.
- Inventories
- Inventory levels similarly demonstrate an increasing trend over time. Beginning near $1.53 billion at the start of 2017, inventories fluctuate within each year but gradually increase, particularly from 2019 onward. By the midpoint of 2022, inventories rise to more than $3.6 billion. The upward movement in inventory values could suggest accumulation of stock, possibly in response to increased demand, supply chain constraints, or strategic stockpiling. The fluctuations within each year may point to operational cycles or changes in inventory management practices.
- Inventory Turnover Ratio
- Inventory turnover ratios, available from the fourth quarter of 2017 onward, generally show volatility but maintain a range mostly between approximately 2.9 and 4.5 times per year. The ratio peaks around 4.5 in late 2020, indicating relatively efficient inventory management or higher sales relative to inventory. However, the ratio tends to decline toward mid-2022, dropping below 3.1, which might signify a slowdown in inventory movement or stock accumulation outpacing sales. The variation in turnover suggests periodic shifts in operational efficiency or market demand.
In summary, the data reveals a steady increase in both cost of goods sold and inventory levels over the examined timeframe, reflecting expanding scale or other market factors. Meanwhile, inventory turnover exhibits fluctuations with a tendency to decrease in recent periods, which may warrant attention to inventory management effectiveness or market conditions affecting sales velocity.
Receivables Turnover
Mosaic Co., receivables turnover calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Receivables, net, including affiliate receivables | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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
Receivables turnover
= (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
÷ Receivables, net, including affiliate receivables
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends in sales and receivables performance over the given periods.
- Net Sales
- Net sales exhibit a general upward trajectory from early 2017 through mid-2022, with fluctuations reflecting some quarterly volatility. The figure starts at approximately $1.58 billion in March 2017 and rises to over $5.37 billion by June 2022, showing a substantial increase in revenue over time.
- There are occasional declines, such as between December 2017 and March 2018, and between December 2019 and March 2020, but subsequent quarters generally show recovery and growth. The strong increase from 2021 into 2022 is especially notable, nearly doubling in size within this timeframe.
- Receivables, Net
- Receivables, net of affiliates, show a similar growth pattern to sales but with signs of increasing accumulation. Values rise from about $578 million in March 2017 to approximately $2.25 billion by June 2022.
- The growth in receivables, particularly in the final years, outpaces the growth in net sales, which may indicate lengthening collection periods or increasing credit terms extended to customers.
- Receivables Turnover Ratio
- The receivables turnover ratio, available only from September 2017 onward, shows a general downward trend. Starting at 11.53 in September 2017, it decreases to 7.35 by June 2022.
- A declining turnover ratio suggests that receivables are being collected more slowly over time, which aligns with the increasing receivables balance relative to sales. This trend may warrant closer attention to credit management and cash flow implications.
- Overall Insights
- The data depicts a company experiencing significant sales growth but also facing challenges in receivables management as indicated by the growing receivables balances and decreasing turnover ratio.
- While expanded sales volumes are positive, the slower collection pace could impact liquidity and working capital efficiency. Monitoring this balance is important to ensure sustained financial health.
Payables Turnover
Mosaic Co., payables turnover calculation (quarterly data)
| Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Cost of goods sold | |||||||||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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
Payables turnover
= (Cost of goods soldQ2 2022
+ Cost of goods soldQ1 2022
+ Cost of goods soldQ4 2021
+ Cost of goods soldQ3 2021)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in cost of goods sold (COGS) and accounts payable over the observed periods. COGS exhibits a general upward trend with visible volatility. Starting at approximately 1,448,500 thousand US dollars in the first quarter of 2017, it peaks toward the end of 2021 and mid-2022, reaching as high as approximately 3,526,800 thousand US dollars. There are several significant increases, particularly between mid-2021 and mid-2022, suggesting increased production or material costs during this period.
Accounts payable also demonstrates variability but with some distinctive patterns. Initially, accounts payable starts at 536,700 thousand US dollars in early 2017 and trends upwards with intermittent declines. The highest recorded levels occur in mid-2022 at around 1,505,700 thousand US dollars. This increase in accounts payable generally corresponds with the rise in COGS, which may indicate extended payment terms or accumulation of supplier liabilities to support higher operational volumes.
The payables turnover ratio, which measures the frequency of paying off suppliers, shows a declining trend over the longer term, beginning around 12.14 in late 2017 and decreasing to as low as 7.26 in early 2022 before a slight rebound. A lower payables turnover implies the company is taking longer to settle its payables, potentially reflecting strategic payment management or cash flow constraints amid rising procurement costs. The fluctuation of this ratio indicates varying payment practices or changing supplier credit terms across the quarters.
Overall, the data indicates increasing operational scale or cost pressure, as evidenced by rising COGS and accounts payable figures. The decreasing trend in payables turnover ratio suggests a potential shift toward delayed payments or more extended creditor cycles. These patterns could impact liquidity and working capital management if the trends persist.
- Cost of Goods Sold (COGS)
- Shows a generally increasing pattern with spikes reaching over 3.5 billion US dollars in mid-2022, indicating rising operational costs.
- Accounts Payable
- Increases in line with COGS but with more fluctuation, peaking above 1.5 billion US dollars in mid-2022, suggesting increased supplier liabilities.
- Payables Turnover Ratio
- Demonstrates a downward trend from above 12 to below 8, implying longer payment cycles and potential liquidity management changes.
Working Capital Turnover
Mosaic Co., working capital turnover 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 | |||||||||||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||||||||||
| Working capital | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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
Working capital turnover
= (Net salesQ2 2022
+ Net salesQ1 2022
+ Net salesQ4 2021
+ Net salesQ3 2021)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's working capital, net sales, and working capital turnover ratios over the observed periods.
- Working Capital
- Working capital figures exhibit a generally fluctuating pattern over the quarters. Starting from US$1,582,800 thousand in the first quarter of 2017, the values experienced moderate declines and increases, reaching a peak around December 2017 at US$2,585,400 thousand. After this peak, working capital generally trended downward through 2019 and into early 2020, hitting a low point of US$374,700 thousand in the last quarter of 2020. Subsequently, the figures showed some recovery, increasing notably in 2021 and 2022, reaching US$1,666,700 thousand by the middle of 2022. This volatility suggests periods of changing liquidity or operational needs impacting short-term financial positioning.
- Net Sales
- Net sales demonstrate a persistently upward trajectory with seasonal fluctuations. Beginning at US$1,578,100 thousand in the first quarter of 2017, net sales increased overall throughout the timeline, reaching US$5,373,100 thousand by the middle of 2022. The data reveal a repeated pattern of rising sales towards year-end in many years (notably Q4 2017, Q4 2018, and Q4 2021), followed by a slight decrease or stabilization in the subsequent quarters. The growth from around 2019 onwards appears more pronounced, indicating strong revenue growth momentum.
- Working Capital Turnover Ratio
- The working capital turnover ratio, available from December 2017 onwards, displays a marked upward trend indicating improved efficiency in utilizing working capital to generate sales. Starting at 2.87 in December 2017, the ratio steadily increased over the years, peaking sharply in March and June 2021 at levels above 22. This suggests a significant increase in sales relative to working capital deployed during these periods. The ratio then declines but remains elevated compared to earlier years, reflecting improved management of short-term assets and liabilities over time despite the fluctuations in working capital. The high turnover ratio in early 2021 coincides with lower working capital levels, highlighting intensified operational efficiency or tighter capital management.
Overall, the data suggest that although working capital has experienced significant variation, the company has managed to increase its sales substantially and improve the efficiency with which it uses its working capital. The high working capital turnover ratios in recent periods indicate effective capital management, even as absolute working capital declined during certain intervals. This pattern may reflect strategic decisions to optimize liquidity and operational performance to support growing sales volumes.
Average Inventory Processing Period
Mosaic Co., average inventory processing period 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 | |||||||||||||||||||||||||||||
| Inventory turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average inventory processing period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover Ratio
- The inventory turnover ratio data commences from the first quarter of 2018. Initially, the ratio stood at 4.24, indicating relatively efficient inventory management. However, a downward trend occurred over the following three quarters, reaching a low of 3.3 in the third quarter of 2018. A noticeable recovery took place in the final quarter of 2018, where the ratio increased to 4.01. The ratio fluctuated mildly in 2019, ranging mostly between 3.11 and 3.86, signaling some instability in inventory turnover during this period. In 2020, the ratio saw a general uptick, peaking at 4.5 in the third quarter, suggesting enhanced inventory utilization or faster sales. This improvement was somewhat sustained in early 2021 but began to decline in the latter half of the year, decreasing from 4.15 at the start of 2021 to 3.34 by the third quarter. Moving into 2022, the ratio continued to drop, reaching a low of 2.94 in the first quarter, before slightly recovering to 3.09 in the second quarter. Overall, there is a discernible cyclical pattern with periods of improvement followed by declines, with a notable weakening of turnover efficiency emerging in 2022.
- Average Inventory Processing Period (Days)
- The average inventory processing period shows an inverse relationship to the inventory turnover ratio, as expected. Starting at 86 days in the first quarter of 2018, the processing period extended substantially to 110 and 111 days in the subsequent two quarters, indicating slower inventory movement. A reduction occurred in the last quarter of 2018, with the period decreasing to 91 days, paralleling the improvement in turnover ratio reported at the same time. Throughout 2019, the processing period remained elevated around 100 to 123 days, reflecting prolonged inventory holding times. The trend reversed during 2020, where this period shortened to as low as 81 days in the third quarter, coinciding with the peak in inventory turnover ratio, suggesting improved operational efficiency in inventory management. In 2021, the processing period began to lengthen again, moving from 83 days at the start to 100 days by year-end, followed by a further increase in early 2022, reaching 124 days by mid-year. This pattern highlights a cyclical nature with intervals of improved processing efficiency interspersed with periods of slower inventory turnover, with recent data indicating a resurgence in longer inventory holding times in 2022.
- Overall Observations
- The data reveals a cyclical inventory management performance with alternating periods of efficiency gains and declines. Early in the observed period, inventory turnover declined while processing periods increased, suggesting slower sales or higher inventory levels. The improvements seen during 2020 indicate a successful reduction in inventory age and faster turnover, possibly due to operational adjustments or market conditions favoring quicker sales. However, the subsequent trend toward declining turnover and longer processing times in late 2021 and 2022 suggests emerging challenges in maintaining the improved inventory flow. This could reflect changes in demand, supply chain disruptions, or strategic shifts in inventory policy. Monitoring these patterns will be critical for timely operational responses.
Average Receivable Collection Period
Mosaic Co., average receivable collection period 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 | |||||||||||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover Ratio
- The Receivables Turnover ratio showed some fluctuations over the observed quarters, generally ranging between approximately 7.35 and 13.38. Early available figures in 2017 start at 11.53 and show a moderate increase through 2018 and 2019, peaking around 13.38 in the third quarter of 2019. Following this peak, there is a noticeable decline during 2020 and into 2021, dropping below 10 at several points in 2021 and 2022. By mid-2022, the ratio reached its lowest observed point of 7.35, indicating a downward trend in how frequently receivables are being collected.
- Average Receivable Collection Period
- The Average Receivable Collection Period in days generally moves inversely to the Receivables Turnover ratio, starting near 32 days in early 2017 and falling to a low around 27 days by late 2018. Thereafter, the collection period lengthens steadily, rising through 2019 and into 2020, reaching approximately 35–37 days by late 2020. This trend continues with further increases during 2021 and into 2022, culminating in a significantly prolonged collection period peaking at 50 days in mid-2022. This suggests that the company has been experiencing slower collections over time.
- Overall Observations
- The data reveals a clear pattern of declining efficiency in accounts receivable management over the time frame observed. Higher turnover ratios in 2018-2019 and shorter collection periods indicate earlier more effective receivables handling. However, the subsequent decline in turnover alongside extended collection periods from 2020 through mid-2022 may point to challenges in collection processes or changes in credit policy, potentially exacerbated by external factors affecting customer payment behaviors. This trend could impact cash flow and working capital management, warranting further investigation and potential strategic adjustments.
Operating Cycle
Mosaic Co., operating cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Operating cycle1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Inventory Processing Period
- The average inventory processing period demonstrated variability over the analyzed quarters. Beginning at 86 days in March 2018, it increased notably to values above 110 days during June and September 2018, peaking at 123 days in September 2019. Subsequently, it showed a general decline, reaching a low of 81 days in December 2020 before fluctuating upwards again to 124 days in June 2022. This oscillation suggests periodic changes in inventory management efficiency or demand fluctuations affecting inventory turnover.
- Receivable Collection Period
- The average receivable collection period remained relatively stable in the range of approximately 27 to 37 days from March 2018 through December 2021, with minor fluctuations. Notable increases occurred beginning March 2022, rising from 45 days in March 2022 to 50 days by June 2022, indicating a lengthening duration in collecting receivables. This uptrend may imply emerging challenges in credit management or customer payment delays in the most recent periods.
- Operating Cycle
- The operating cycle, representing the combined duration of inventory processing and receivable collection, reflected the trends observed in the individual components. Starting at 118 days in March 2018, it rose to a peak of 154 days in March 2022 and further extended to 168 days by June 2022. Despite some periods of reduction—particularly near the end of 2020—the overall trend over the full period shows elongation of the operating cycle, potentially indicating a gradual slowdown in operational efficiency or increased working capital requirements.
- Summary of Trends
- Overall, the financial activity periods suggest initial improvement in inventory management and receivables collection up to late 2020, followed by a reversal with increasing days in all measures by mid-2022. The increase in receivable collection and operating cycle duration in recent quarters could signal less favorable working capital conditions and might warrant strategic attention to credit policies and inventory turnover to optimize cash flow and operational performance.
Average Payables Payment Period
Mosaic Co., average payables payment period 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 | |||||||||||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio displays a declining trend over the observed periods. Starting near 12.14 in the earliest recorded quarter, it decreases gradually to values around 7.26 by the last quarters, with a brief increase to 11.52 before declining again. This indicates a lengthening of the time taken to pay suppliers, as a lower turnover ratio suggests slower payments.
- Average Payables Payment Period
- The average payables payment period generally increases over the reported periods. Initially around 30 days, it rises to above 40 days and reaches approximately 50 days in some quarters before dropping back to near 32 days and then increasing again to 49 days by the last quarter. This pattern corroborates the trend observed in the payables turnover ratio, indicating an extended duration in payment cycles at times, followed by some reduction, then another increase.
- Overall Analysis
- The data suggests that the company has experienced fluctuations in its payment behavior to suppliers, with an overall trend toward longer payment periods during the majority of the time frame. The payables turnover ratio and average payment period are inversely related, confirming that as payables turnover decreases, the days to settle payables increase. This may reflect strategic management of cash flows or changes in supplier credit terms over time.
Cash Conversion Cycle
Mosaic Co., cash conversion cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||||||||
| Average inventory processing period | |||||||||||||||||||||||||||||
| Average receivable collection period | |||||||||||||||||||||||||||||
| Average payables payment period | |||||||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Cash conversion cycle1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||
| Linde plc | |||||||||||||||||||||||||||||
| Sherwin-Williams Co. | |||||||||||||||||||||||||||||
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals distinct trends in the operating cycle components and the overall cash conversion cycle for the periods starting from March 31, 2017, through June 30, 2022.
- Average Inventory Processing Period
- The average inventory processing period shows variability over time, starting from 86 days in March 2018, rising to a peak of 123 days in September 2019, and then generally declining towards 81 days by December 2020. A moderate increase followed through 2021 and into mid-2022, reaching 124 days by March 2022 and slightly declining thereafter. This suggests fluctuations in inventory turnover efficiency, with periods of slower inventory processing particularly notable in late 2019 and early 2022.
- Average Receivable Collection Period
- The average receivable collection period remained relatively stable around the low 30s (days) initially, with minor fluctuations between 27 and 37 days through the period. However, from March 2021 onwards, there is a noticeable upward trend, peaking at 50 days in June 2022. This indicates a lengthening in the time taken to collect receivables, which may impact liquidity negatively if not managed carefully.
- Average Payables Payment Period
- The payable payment period presents a generally increasing trend with intermittent fluctuations. Starting at 30 days in March 2018, it peaked at 50 days in September 2021, followed by some variability but remaining elevated through mid-2022. The lengthening of the payment period suggests a strategic extension of payment terms to suppliers, potentially to conserve cash or improve working capital management.
- Cash Conversion Cycle
- The cash conversion cycle (CCC) follows a pattern reflective of the individual components' trends. After a high of 112-113 days around mid-2019, the CCC declined to the low 80s by the end of 2020, indicating improved efficiency in managing working capital. Subsequently, the cycle lengthened again, reaching a peak of 132 days in March 2022 before slightly decreasing. This overall elongation signals a reduced speed in converting resources into cash, with potential implications for operational liquidity.
In summary, the data depict fluctuating working capital efficiency over the analyzed periods, with improvements in inventory processing and cash conversion efficiency noted up to late 2020, followed by a reversal marked by increased collection periods and a prolonged cash conversion cycle in the most recent quarters. These trends may warrant further investigation and strategic response to optimize cash flows and operational performance.