Monsanto Co. (NYSE:MON)

The financial data reveals several notable trends and fluctuations over the observed period. Net operating profit after taxes (NOPAT) demonstrates variability, with a peak occurring in the year ending August 31, 2013, followed by a general decline until the year ending August 31, 2016. A recovery is visible in the final year under review, with NOPAT increasing from the prior year's low.

Cost of capital shows a slight downward trend from the beginning until the year ending August 31, 2015, after which it increases again in the subsequent years. The range remains relatively stable, fluctuating between approximately 14.08% and 16.05%, indicating moderate stability in the cost of financing or required return expectations.

Invested capital steadily rises from the initial year through the year ending August 31, 2015, suggesting ongoing investments or capital expenditures. However, there is a noticeable decline in the year ending August 31, 2016, followed by a modest increase in the last year. This pattern could reflect adjustments in asset base or strategic capital allocation decisions.

Economic profit, which takes into account the cost of capital, exhibits significant volatility. After a negative value in the initial year, it improves to positive figures in the next two years before plunging into negative territory in the years ending August 31, 2015, and August 31, 2016. The positive recovery in the final year shows an improvement but still reflects inconsistency in value creation relative to the cost of invested capital.

Overall, the data indicates fluctuations in operational efficiency and capital utilization. The company experiences challenges in sustaining economic profit despite managing to stabilize or grow invested capital and NOPAT toward the end of the period. The changes in cost of capital remain moderate, suggesting that shifts in economic profit are more directly influenced by operational performance and capital management rather than financing costs.

The financial data reveals certain trends in profitability for the analyzed company over a six-year period ending August 31, 2017.

Net Income Attributable to the Company

Net income shows an overall fluctuating pattern across the years. It increased steadily from 2045 million US dollars in 2012 to a peak of 2740 million in 2014. Subsequently, it experienced a decline to 2314 million in 2015 and a more pronounced decrease to 1336 million in 2016, indicating a significant setback in profitability during that year. However, the net income rebounded sharply to 2260 million in 2017, signaling recovery but not reaching the earlier peak levels.

Net Operating Profit After Taxes (NOPAT)

NOPAT similarly experienced variations over the examined period. It rose from 2247 million USD in 2012 to 2743 million in 2013, before slightly declining to 2633 million in 2014. The value then decreased further to 2361 million in 2015 and took a more substantial fall to 1816 million in 2016. In 2017, NOPAT saw a notable recovery to 2582 million. This suggests operational efficiency or profitability challenges during 2015 and 2016 with improvement thereafter.

Overall, both net income and NOPAT indicate a peak generally around 2013-2014, followed by declines in 2015 and notably in 2016. The recovery in 2017 reflects a positive turnaround. The inconsistency observed in both metrics suggests volatility in profitability and operational performance during these years, highlighting a period of financial challenges mid-cycle with subsequent recovery efforts yielding results by the final year reported.

Income Tax Provision from Continuing Operations

The income tax provision from continuing operations exhibited a fluctuating trend over the six-year period. Starting at 901 million USD in 2012, a slight increase to 915 million USD was observed in 2013. This upward movement continued more notably in 2014, reaching a peak of 1,078 million USD. However, the subsequent years showed a declining pattern: it decreased to 864 million USD in 2015, further dropped to 695 million USD in 2016, and reached its lowest point at 626 million USD in 2017. Overall, despite an initial rise until 2014, the income tax provision has generally declined in the latter part of the timeframe.

Cash Operating Taxes

Cash operating taxes demonstrated more volatility relative to the income tax provision. Beginning at 708 million USD in 2012, there was a steady increase to 821 million USD in 2013, followed by a substantial spike to 1,179 million USD in 2014. The upward trend continued into 2015, peaking at 1,272 million USD. However, unlike income tax provision, cash operating taxes experienced a sharp decrease in 2016, falling to 801 million USD, and then a further decline to 719 million USD by 2017. Despite the fluctuations, the values at the end of the period remained higher than the initial 2012 figures.

Comparative Observations

Both income tax provision and cash operating taxes display a pattern of increasing values through the early years, reaching peaks around 2014 or 2015, followed by a notable decline in the last two years. The cash operating taxes showed more pronounced increases and decreases compared to the income tax provision, suggesting greater variability in actual tax cash outflows relative to the accounting provisions. The consistent decline in both items after 2015 might indicate changes in tax strategy, operational performance, or tax regulations affecting the company's tax liabilities.

The financial data reveals several important trends and shifts over the six-year period ending August 31, 2017.

Total reported debt & leases

This metric shows a notable increase from 2012 through 2015, rising sharply from approximately $2.4 billion to $9.5 billion. The peak occurs in 2015 with a slight decline thereafter, dropping to $8.6 billion by 2017. This suggests a significant increase in leverage or borrowing activities during the mid-period, followed by some reduction in debt levels.

Total Monsanto Company shareowners’ equity

Shareowners’ equity exhibits a declining trend over the years. Starting at about $11.8 billion in 2012, equity increases slightly in 2013 but then declines steadily to a low of $4.5 billion in 2016. A partial recovery to $6.4 billion in 2017 is observed. This decreasing equity position alongside rising debt levels in the earlier years indicates possible financial restructuring or share buybacks impacting the equity base.

Invested capital

Invested capital shows a general upward trend from 2012 through 2015, rising from approximately $14.6 billion to $18.3 billion before declining to around $16.0 billion in 2016. A slight increase to $16.4 billion in 2017 occurs. The growth in invested capital up to 2015 parallels the increases in both debt and equity during that period, suggesting expansion or acquisition initiatives. The subsequent decrease and stabilization may reflect a period of consolidation or reevaluation of capital investment.

Overall, the data suggest that the company experienced increased leverage with a peak in debt around 2015, accompanied by declining shareholders’ equity after 2013. Despite fluctuations, invested capital remained relatively high, implying continued commitment to the company's operational base or growth efforts. The partial recovery in equity and reduction in debt post-2015 could indicate a strategic shift towards strengthening the balance sheet and deleveraging.

The financial data reveals fluctuations in economic profit over the six-year period. Initially, economic profit was negative at -71 million USD in 2012, followed by a significant positive increase reaching 238 million USD in 2014. Thereafter, economic profit declined sharply, turning negative again with values of -220 million USD in 2015 and -438 million USD in 2016, before recovering to a positive 183 million USD in 2017.

Invested capital exhibited a general upward trend with some variability. Starting at 14,553 million USD in 2012, it increased steadily to a peak of 18,327 million USD in 2015. Subsequently, invested capital decreased to 15,963 million USD in 2016 and then slightly rose again to 16,366 million USD in 2017. This indicates periodic adjustments in capital allocation or asset base during the timeframe analyzed.

The economic spread ratio, which reflects the difference between return on invested capital and the cost of capital, mirrored the volatility seen in economic profit. The ratio began negative at -0.49% in 2012, improved to positive values above 1% in 2013 and 2014, and then deteriorated into negative territory in 2015 and 2016 with lows approaching -2.74%. A recovery to 1.12% positive spread occurred in 2017.

Overall, the data suggests variability in profitability and capital efficiency throughout the period. Positive economic profits and spreads in 2013, 2014, and 2017 imply periods where returns exceeded the cost of capital. In contrast, setbacks in 2015 and 2016 with negative economic profits and spreads indicate challenges in creating shareholder value during those years. The invested capital trend indicates strategic adjustments in asset investment, potentially aimed at optimizing returns in response to changing economic conditions.

The analysis of the financial metrics over the six-year period reveals significant variability in economic profit and economic profit margin, contrasted with fluctuating but relatively stable adjusted net sales.

Adjusted Net Sales

Adjusted net sales show a general upward trend from 2012 to 2014, increasing from approximately $13.4 billion to $15.7 billion. However, a decline occurred in 2015 and 2016, dropping to roughly $13.7 billion in 2016, before rising slightly again in 2017 to approximately $14.9 billion. This indicates some volatility in sales revenues with a peak observed in 2014.

Economic Profit

Economic profit figures exhibit significant fluctuations during the period. Initial economic loss of $71 million in 2012 turned into considerable profit in 2013 and 2014, reaching $211 million and $238 million, respectively. However, this was followed by a steep decline in 2015 and 2016, resulting in losses of $220 million and $438 million. In 2017, economic profit rebounded to $183 million, indicating recovery after a two-year downturn.

Economic Profit Margin

The economic profit margin closely mirrors the trend observed in economic profit. It improved from a negative margin of -0.53% in 2012 to a positive margin exceeding 1.4% in 2013 and 2014. This margin then deteriorated sharply to negative values of -1.47% in 2015 and further to -3.2% in 2016, reflecting the economic losses during those years. The margin recovered to 1.23% in 2017, suggesting improved profitability relative to sales.

Overall, the period is characterized by growth in net sales followed by a mid-period contraction and recovery. Economic profit and its margin indicate a volatile profitability pattern, with a notable recovery in the final year after two years of losses. This suggests that while the company managed to increase sales initially, profitability challenges emerged mid-period but were addressed subsequently, resulting in a rebound in economic profit performance.