Current Ratio
since 2005
Calculation
Monsanto Co., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Aug 31, 2017 | 1.35 | = | 8,651) | ÷ | 6,398) |
| Aug 31, 2016 | 1.21 | = | 8,157) | ÷ | 6,729) |
| Aug 31, 2015 | 2.05 | = | 10,625) | ÷ | 5,177) |
| Aug 31, 2014 | 1.89 | = | 9,675) | ÷ | 5,112) |
| Aug 31, 2013 | 2.32 | = | 10,077) | ÷ | 4,336) |
| Aug 31, 2012 | 2.29 | = | 9,658) | ÷ | 4,221) |
| Aug 31, 2011 | 1.86 | = | 8,809) | ÷ | 4,729) |
| Aug 31, 2010 | 2.01 | = | 7,122) | ÷ | 3,541) |
| Aug 31, 2009 | 2.10 | = | 7,883) | ÷ | 3,756) |
| Aug 31, 2008 | 1.71 | = | 7,609) | ÷ | 4,439) |
| Aug 31, 2007 | 1.65 | = | 5,084) | ÷ | 3,075) |
| Aug 31, 2006 | 2.40 | = | 5,461) | ÷ | 2,279) |
| Aug 31, 2005 | 2.15 | = | 4,644) | ÷ | 2,159) |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
1 US$ in millions
The analysis of the annual financial data reveals several notable trends in the company's liquidity position from 2005 to 2017.
- Current Assets
- Current assets showed an overall upward trend from 2005 through 2015, increasing from 4,644 million USD in 2005 to a peak of 10,625 million USD in 2015. After 2015, current assets declined notably, falling to 8,157 million USD by 2016 and slightly recovering to 8,651 million USD in 2017. This suggests that the company had been building its short-term asset base for many years before experiencing a contraction in the most recent years.
- Current Liabilities
- Current liabilities generally increased over the period under review. Beginning at 2,159 million USD in 2005, current liabilities climbed with some fluctuations to reach 6,729 million USD in 2016 before slightly decreasing to 6,398 million USD in 2017. The increase in liabilities was particularly marked after 2010, indicating a greater short-term debt load or obligations.
- Current Ratio
- The current ratio, which measures short-term liquidity by dividing current assets by current liabilities, fluctuated throughout the period. It was relatively high in the early years, peaking at 2.4 in 2006, then generally declined with some cyclical variation. Notably, the ratio dropped below the 2.0 threshold after 2012, reaching lows of 1.21 in 2016 and 1.35 in 2017. This decreasing trend indicates a weakening short-term liquidity position, implying that the company faced a tighter balance between readily available assets and short-term obligations in recent years.
Collectively, these patterns suggest that while the company expanded its current assets significantly over the long term, the simultaneous and more rapid growth in current liabilities, especially after 2010, eroded its liquidity cushion. The declining current ratio in the final years points to increased potential liquidity risk, requiring attention to ensure the company can meet near-term financial commitments without distress.
Comparison to Competitors
Monsanto Co., current ratio, long-term trends, comparison to competitors
| Monsanto Co. | lululemon athletica inc. | Nike Inc. | |
|---|---|---|---|
| Aug 31, 2017 | 1.35 | 4.82 | 2.93 |
| Aug 31, 2016 | 1.21 | 4.07 | 2.80 |
| Aug 31, 2015 | 2.05 | 5.95 | 2.52 |
| Aug 31, 2014 | 1.89 | 8.31 | 2.72 |
| Aug 31, 2013 | 2.32 | 5.90 | 3.47 |
| Aug 31, 2012 | 2.29 | 5.10 | 2.98 |
| Aug 31, 2011 | 1.86 | 4.56 | 2.85 |
| Aug 31, 2010 | 2.01 | 3.69 | 3.26 |
| Aug 31, 2009 | 2.10 | 2.58 | 2.97 |
| Aug 31, 2008 | 1.71 | 2.73 | 2.66 |
| Aug 31, 2007 | 1.65 | — | 3.13 |
| Aug 31, 2006 | 2.40 | — | 2.81 |
| Aug 31, 2005 | 2.15 | — | 3.18 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Sector (Consumer Durables & Apparel)
Monsanto Co., current ratio, long-term trends, comparison to sector (consumer durables & apparel)
| Monsanto Co. | Consumer Durables & Apparel | |
|---|---|---|
| Aug 31, 2017 | 1.35 | 3.01 |
| Aug 31, 2016 | 1.21 | 2.86 |
| Aug 31, 2015 | 2.05 | 2.61 |
| Aug 31, 2014 | 1.89 | 2.85 |
| Aug 31, 2013 | 2.32 | 3.55 |
| Aug 31, 2012 | 2.29 | 3.04 |
| Aug 31, 2011 | 1.86 | 2.89 |
| Aug 31, 2010 | 2.01 | 3.26 |
| Aug 31, 2009 | 2.10 | 2.97 |
| Aug 31, 2008 | 1.71 | 2.66 |
| Aug 31, 2007 | 1.65 | 3.13 |
| Aug 31, 2006 | 2.40 | 2.81 |
| Aug 31, 2005 | 2.15 | 3.18 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).
Comparison to Industry (Consumer Discretionary)
Monsanto Co., current ratio, long-term trends, comparison to industry (consumer discretionary)
| Monsanto Co. | Consumer Discretionary | |
|---|---|---|
| Aug 31, 2017 | 1.35 | 1.15 |
| Aug 31, 2016 | 1.21 | 1.12 |
| Aug 31, 2015 | 2.05 | 1.25 |
| Aug 31, 2014 | 1.89 | 1.11 |
| Aug 31, 2013 | 2.32 | 1.15 |
| Aug 31, 2012 | 2.29 | 1.14 |
| Aug 31, 2011 | 1.86 | 1.31 |
| Aug 31, 2010 | 2.01 | 1.24 |
| Aug 31, 2009 | 2.10 | 1.25 |
| Aug 31, 2008 | 1.71 | 0.96 |
| Aug 31, 2007 | 1.65 | 1.21 |
| Aug 31, 2006 | 2.40 | 1.15 |
| Aug 31, 2005 | 2.15 | 1.10 |
Based on: 10-K (reporting date: 2017-08-31), 10-K (reporting date: 2016-08-31), 10-K (reporting date: 2015-08-31), 10-K (reporting date: 2014-08-31), 10-K (reporting date: 2013-08-31), 10-K (reporting date: 2012-08-31), 10-K (reporting date: 2011-08-31), 10-K (reporting date: 2010-08-31), 10-K (reporting date: 2009-08-31), 10-K (reporting date: 2008-08-31), 10-K (reporting date: 2007-08-31), 10-K (reporting date: 2006-08-31), 10-K (reporting date: 2005-08-31).