Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Monsanto Co., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30), 10-K (reporting date: 2012-08-31), 10-Q (reporting date: 2012-05-31), 10-Q (reporting date: 2012-02-29), 10-Q (reporting date: 2011-11-30).
The analysis of the financial ratios over the observed periods reveals several notable trends regarding leverage and coverage metrics.
- Debt to Equity Ratio
- This ratio remained relatively stable at a low level around 0.16-0.19 from November 2011 through August 2013. Beginning November 2013, it rose sharply, peaking at 2.73 in November 2015. Subsequently, the ratio steadily declined, reaching 1.01 by February 2018. This indicates a period of increased reliance on debt financing followed by efforts to reduce debt relative to equity.
- Debt to Capital Ratio
- Mirroring the debt to equity trend, the debt to capital ratio showed stability between 0.14 and 0.16 until August 2013. It then escalated sharply to a peak of 0.73 in November 2015, signaling a higher proportion of debt within the company’s capital structure. Thereafter, it decreased consistently to 0.50 by February 2018, showing deleveraging actions.
- Debt to Assets Ratio
- This ratio exhibited a moderate increase over the period. Initially stable near 0.10 through early 2013, it climbed to 0.45 by August 2016, indicating increasing debt relative to total assets. Afterwards, it declined to 0.35 by February 2018, suggesting asset base growth or debt reduction.
- Financial Leverage Ratio
- Financial leverage remained near 1.6-1.9 up to August 2013, then rose significantly, reaching a peak of 6.03 in November 2015. This implies an amplified use of debt amplifying equity returns during this period. Post-peak, the ratio showed a downward trend, decreasing to 2.93 by February 2018, consistent with the reduction in debt ratios.
- Interest Coverage Ratio
- Data for interest coverage begins from May 2012, where it was high around 16.64 and improved further to a peak of 21.89 by February 2014. From that point onward, the ratio declined steadily to a low of 4.28 in August 2016, signaling increasing difficulty covering interest expenses during the period of high leverage. Subsequently, it recovered somewhat, reaching around 7.77 by February 2018.
In summary, the financial data depict a phase of steady capital structure until 2013, followed by a marked increase in debt and financial leverage reaching peaks in 2015-2016. This was accompanied by a deteriorating ability to cover interest expenses. From late 2016 to early 2018, there was a clear deleveraging trend, with reductions in debt ratios and partial improvement in interest coverage, reflecting a move toward a more conservative financial position.
Debt Ratios
Coverage Ratios
Debt to Equity
Monsanto Co., debt to equity calculation (quarterly data)
| Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | Aug 31, 2013 | May 31, 2013 | Feb 28, 2013 | Nov 30, 2012 | Aug 31, 2012 | May 31, 2012 | Feb 29, 2012 | Nov 30, 2011 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Short-term debt, including current portion of long-term debt | 1,212) | 1,168) | 870) | 2,611) | 1,611) | 570) | 1,587) | 2,557) | 1,083) | 1,788) | 615) | 587) | 346) | 636) | 233) | 162) | 104) | 262) | 51) | 169) | 152) | 26) | 36) | 634) | 610) | 522) | ||||||||
| Long-term debt, excluding current portion | 6,635) | 6,949) | 7,254) | 7,246) | 7,560) | 8,047) | 7,453) | 7,948) | 7,945) | 7,939) | 8,429) | 8,396) | 7,894) | 7,529) | 7,528) | 3,049) | 3,051) | 3,057) | 2,061) | 2,054) | 2,054) | 2,054) | 2,038) | 1,538) | 1,538) | 1,542) | ||||||||
| Total debt | 7,847) | 8,117) | 8,124) | 9,857) | 9,171) | 8,617) | 9,040) | 10,505) | 9,028) | 9,727) | 9,044) | 8,983) | 8,240) | 8,165) | 7,761) | 3,211) | 3,155) | 3,319) | 2,112) | 2,223) | 2,206) | 2,080) | 2,074) | 2,172) | 2,148) | 2,064) | ||||||||
| Total Monsanto Company shareowners’ equity | 7,754) | 6,601) | 6,438) | 6,532) | 5,540) | 4,402) | 4,534) | 5,110) | 4,152) | 3,559) | 6,990) | 8,338) | 7,659) | 7,410) | 7,875) | 14,662) | 13,678) | 12,572) | 12,559) | 13,869) | 13,240) | 12,259) | 11,833) | 12,077) | 11,994) | 11,041) | ||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||||||
| Debt to equity1 | 1.01 | 1.23 | 1.26 | 1.51 | 1.66 | 1.96 | 1.99 | 2.06 | 2.17 | 2.73 | 1.29 | 1.08 | 1.08 | 1.10 | 0.99 | 0.22 | 0.23 | 0.26 | 0.17 | 0.16 | 0.17 | 0.17 | 0.18 | 0.18 | 0.18 | 0.19 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30), 10-K (reporting date: 2012-08-31), 10-Q (reporting date: 2012-05-31), 10-Q (reporting date: 2012-02-29), 10-Q (reporting date: 2011-11-30).
1 Q2 2018 Calculation
Debt to equity = Total debt ÷ Total Monsanto Company shareowners’ equity
= 7,847 ÷ 7,754 = 1.01
2 Click competitor name to see calculations.
The financial data for the company over the recorded periods reveals significant fluctuations in its capital structure, particularly in total debt, shareowners’ equity, and the resulting debt-to-equity ratio.
- Total Debt
- The total debt shows a relatively stable trend in the initial periods from November 2011 to August 2013, fluctuating modestly between approximately 2,064 million US dollars and 2,223 million US dollars. However, a sharp and substantial increase occurs starting November 2013, peaking at 9,727 million US dollars by November 2015. Following this peak, debt levels exhibit some variability but remain elevated compared to the earlier periods, generally staying above 7,800 million US dollars and ending at 7,847 million US dollars by February 2018.
- Total Shareowners’ Equity
- Shareowners’ equity presents an increasing trend initially from November 2011 through May 2014, rising from around 11,041 million US dollars to a peak of approximately 14,662 million US dollars. In the next periods, there is a striking decline beginning August 2014, reaching a low of 3,559 million US dollars by November 2015. Thereafter, equity gradually recovers, climbing back to about 7,754 million US dollars by February 2018, but it does not return to the previous peak levels seen before 2014.
- Debt to Equity Ratio
- The debt to equity ratio follows the trends in debt and equity closely. Initially, from November 2011 through August 2013, the ratio remains low and stable, fluctuating only between 0.16 and 0.19, indicating a relatively conservative use of debt relative to equity. Beginning November 2013, this ratio escalates dramatically, exhibiting a peak of 2.73 by February 2016, signifying a substantially higher leverage and reliance on debt. After this peak, the ratio gradually declines but remains above 1.0 through February 2018, suggesting the company maintains a higher level of leverage than during the earlier part of the period.
Overall, the data indicates that the company underwent a significant shift toward increased debt financing starting late 2013, coupled with a marked reduction in equity during the 2014-2015 period. This shift resulted in heightened financial leverage, evidenced by a substantial rise in the debt to equity ratio. Although there is some recovery in equity and a moderate reduction in leverage toward the end of the period, the company remains more leveraged than in the earlier years. This pattern suggests strategic financial decisions potentially involving acquisitions or investments financed by debt, but it also reflects increased financial risk due to higher leverage.
Debt to Capital
Monsanto Co., debt to capital calculation (quarterly data)
| Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | Aug 31, 2013 | May 31, 2013 | Feb 28, 2013 | Nov 30, 2012 | Aug 31, 2012 | May 31, 2012 | Feb 29, 2012 | Nov 30, 2011 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Short-term debt, including current portion of long-term debt | 1,212) | 1,168) | 870) | 2,611) | 1,611) | 570) | 1,587) | 2,557) | 1,083) | 1,788) | 615) | 587) | 346) | 636) | 233) | 162) | 104) | 262) | 51) | 169) | 152) | 26) | 36) | 634) | 610) | 522) | ||||||||
| Long-term debt, excluding current portion | 6,635) | 6,949) | 7,254) | 7,246) | 7,560) | 8,047) | 7,453) | 7,948) | 7,945) | 7,939) | 8,429) | 8,396) | 7,894) | 7,529) | 7,528) | 3,049) | 3,051) | 3,057) | 2,061) | 2,054) | 2,054) | 2,054) | 2,038) | 1,538) | 1,538) | 1,542) | ||||||||
| Total debt | 7,847) | 8,117) | 8,124) | 9,857) | 9,171) | 8,617) | 9,040) | 10,505) | 9,028) | 9,727) | 9,044) | 8,983) | 8,240) | 8,165) | 7,761) | 3,211) | 3,155) | 3,319) | 2,112) | 2,223) | 2,206) | 2,080) | 2,074) | 2,172) | 2,148) | 2,064) | ||||||||
| Total Monsanto Company shareowners’ equity | 7,754) | 6,601) | 6,438) | 6,532) | 5,540) | 4,402) | 4,534) | 5,110) | 4,152) | 3,559) | 6,990) | 8,338) | 7,659) | 7,410) | 7,875) | 14,662) | 13,678) | 12,572) | 12,559) | 13,869) | 13,240) | 12,259) | 11,833) | 12,077) | 11,994) | 11,041) | ||||||||
| Total capital | 15,601) | 14,718) | 14,562) | 16,389) | 14,711) | 13,019) | 13,574) | 15,615) | 13,180) | 13,286) | 16,034) | 17,321) | 15,899) | 15,575) | 15,636) | 17,873) | 16,833) | 15,891) | 14,671) | 16,092) | 15,446) | 14,339) | 13,907) | 14,249) | 14,142) | 13,105) | ||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||||||
| Debt to capital1 | 0.50 | 0.55 | 0.56 | 0.60 | 0.62 | 0.66 | 0.67 | 0.67 | 0.68 | 0.73 | 0.56 | 0.52 | 0.52 | 0.52 | 0.50 | 0.18 | 0.19 | 0.21 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.16 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30), 10-K (reporting date: 2012-08-31), 10-Q (reporting date: 2012-05-31), 10-Q (reporting date: 2012-02-29), 10-Q (reporting date: 2011-11-30).
1 Q2 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,847 ÷ 15,601 = 0.50
2 Click competitor name to see calculations.
- Total Debt
-
The total debt exhibited moderate fluctuations over the periods analyzed. Initially, total debt ranged from approximately 2,064 million US$ to around 2,223 million US$ between late 2011 and mid-2013, indicating relatively stable debt levels during this period. However, notable increases occurred starting in the latter half of 2013, with debt rising sharply to a peak of approximately 9,727 million US$ by November 2015. Following this peak, total debt demonstrated a general declining trend, decreasing gradually to about 7,847 million US$ by early 2018.
- Total Capital
-
Total capital showed general growth initially, increasing from approximately 13,105 million US$ in late 2011 to a high of around 17,873 million US$ by mid-2014. From this peak, total capital values declined significantly, reaching their lowest at about 13,019 million US$ by November 2016. Subsequent periods saw a recovery, with total capital rising back to roughly 15,601 million US$ by early 2018. These fluctuations reflect varying investment, equity, and debt balances throughout the examined timeframe.
- Debt to Capital Ratio
-
The debt to capital ratio remained relatively low and stable, fluctuating between 0.14 and 0.16 from late 2011 until mid-2013, consistent with the stable total debt and capital levels during this interval. A sharp increase started from late 2013, with the ratio peaking at 0.73 by November 2015, indicating a substantial shift toward greater leverage. After this peak, there was a gradual reduction in the leverage ratio, decreasing to approximately 0.50 by early 2018. This trend suggests an initial period of increased borrowing followed by efforts to deleverage and rebalance the company's capital structure.
- Overall Analysis
-
The data reflect a period from 2011 to 2018 characterized by an initial phase of stable financial leverage and moderate growth, transitioning to a period of increased borrowing culminating in mid-2015. This was followed by a corrective phase where the company reduced total debt and rebalanced capital. The peak leverage around 2015 suggests strategic financial decisions that led to a significant increase in debt, possibly linked to acquisitions, expansions, or restructuring activities. The subsequent decrease in both total debt and the debt to capital ratio indicates a focus on strengthening the balance sheet and reducing financial risk in the later periods.
Debt to Assets
Monsanto Co., debt to assets calculation (quarterly data)
| Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | Aug 31, 2013 | May 31, 2013 | Feb 28, 2013 | Nov 30, 2012 | Aug 31, 2012 | May 31, 2012 | Feb 29, 2012 | Nov 30, 2011 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Short-term debt, including current portion of long-term debt | 1,212) | 1,168) | 870) | 2,611) | 1,611) | 570) | 1,587) | 2,557) | 1,083) | 1,788) | 615) | 587) | 346) | 636) | 233) | 162) | 104) | 262) | 51) | 169) | 152) | 26) | 36) | 634) | 610) | 522) | ||||||||
| Long-term debt, excluding current portion | 6,635) | 6,949) | 7,254) | 7,246) | 7,560) | 8,047) | 7,453) | 7,948) | 7,945) | 7,939) | 8,429) | 8,396) | 7,894) | 7,529) | 7,528) | 3,049) | 3,051) | 3,057) | 2,061) | 2,054) | 2,054) | 2,054) | 2,038) | 1,538) | 1,538) | 1,542) | ||||||||
| Total debt | 7,847) | 8,117) | 8,124) | 9,857) | 9,171) | 8,617) | 9,040) | 10,505) | 9,028) | 9,727) | 9,044) | 8,983) | 8,240) | 8,165) | 7,761) | 3,211) | 3,155) | 3,319) | 2,112) | 2,223) | 2,206) | 2,080) | 2,074) | 2,172) | 2,148) | 2,064) | ||||||||
| Total assets | 22,687) | 23,136) | 21,333) | 21,758) | 21,373) | 20,959) | 19,736) | 20,328) | 19,413) | 21,446) | 21,920) | 22,259) | 22,402) | 23,374) | 21,981) | 23,281) | 23,457) | 24,077) | 20,664) | 21,679) | 22,079) | 22,537) | 20,224) | 19,984) | 20,721) | 20,423) | ||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||||||
| Debt to assets1 | 0.35 | 0.35 | 0.38 | 0.45 | 0.43 | 0.41 | 0.46 | 0.52 | 0.47 | 0.45 | 0.41 | 0.40 | 0.37 | 0.35 | 0.35 | 0.14 | 0.13 | 0.14 | 0.10 | 0.10 | 0.10 | 0.09 | 0.10 | 0.11 | 0.10 | 0.10 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30), 10-K (reporting date: 2012-08-31), 10-Q (reporting date: 2012-05-31), 10-Q (reporting date: 2012-02-29), 10-Q (reporting date: 2011-11-30).
1 Q2 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 7,847 ÷ 22,687 = 0.35
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends in the company's leverage and asset management over the observed periods.
- Total Debt
- The total debt exhibited a general increasing trend from November 2011 through February 2018. Starting around $2,064 million, the debt increased moderately until mid-2013. A notable spike occurred in August 2014, when debt surged to over $7,700 million, maintaining elevated levels through subsequent quarters, peaking near $10,505 million in August 2016. Following this peak, total debt showed some reduction but remained substantially higher than earlier periods, ending around $7,847 million in February 2018.
- Total Assets
- Total assets fluctuated across the quarters without a strong consistent trend. Beginning near $20,423 million in November 2011, assets saw moderate growth and volatility, reaching a peak near $24,077 million in November 2013. Subsequently, assets declined somewhat and stabilized with slight fluctuations, ending approximately at $22,687 million in February 2018. This indicates relative stability in asset levels despite notable debt increases.
- Debt to Assets Ratio
- The debt to assets ratio maintained low levels around 0.1 in the initial periods, reflecting conservative leverage. Beginning in mid-2014, the ratio experienced a sharp increase commensurate with the rise in total debt, reaching a maximum of 0.52 in August 2016. This indicates a significant increase in leverage, with debt comprising over half of total assets at its peak. After this peak, the ratio decreased, reaching approximately 0.35 by the end of the dataset, suggesting some deleveraging or asset growth relative to debt.
Overall, the data suggests a strategic shift involving increased borrowing starting in 2014, which substantially raised leverage ratios. Despite this, total asset levels remained relatively stable, indicating that the company likely maintained or slightly grew its asset base while increasing debt levels. The subsequent reduction in the debt to assets ratio after 2016 may reflect efforts to manage leverage through debt reduction or asset growth.
Financial Leverage
Monsanto Co., financial leverage calculation (quarterly data)
| Feb 28, 2018 | Nov 30, 2017 | Aug 31, 2017 | May 31, 2017 | Feb 28, 2017 | Nov 30, 2016 | Aug 31, 2016 | May 31, 2016 | Feb 29, 2016 | Nov 30, 2015 | Aug 31, 2015 | May 31, 2015 | Feb 28, 2015 | Nov 30, 2014 | Aug 31, 2014 | May 31, 2014 | Feb 28, 2014 | Nov 30, 2013 | Aug 31, 2013 | May 31, 2013 | Feb 28, 2013 | Nov 30, 2012 | Aug 31, 2012 | May 31, 2012 | Feb 29, 2012 | Nov 30, 2011 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||||||||
| Total assets | 22,687) | 23,136) | 21,333) | 21,758) | 21,373) | 20,959) | 19,736) | 20,328) | 19,413) | 21,446) | 21,920) | 22,259) | 22,402) | 23,374) | 21,981) | 23,281) | 23,457) | 24,077) | 20,664) | 21,679) | 22,079) | 22,537) | 20,224) | 19,984) | 20,721) | 20,423) | ||||||||
| Total Monsanto Company shareowners’ equity | 7,754) | 6,601) | 6,438) | 6,532) | 5,540) | 4,402) | 4,534) | 5,110) | 4,152) | 3,559) | 6,990) | 8,338) | 7,659) | 7,410) | 7,875) | 14,662) | 13,678) | 12,572) | 12,559) | 13,869) | 13,240) | 12,259) | 11,833) | 12,077) | 11,994) | 11,041) | ||||||||
| Solvency Ratio | ||||||||||||||||||||||||||||||||||
| Financial leverage1 | 2.93 | 3.50 | 3.31 | 3.33 | 3.86 | 4.76 | 4.35 | 3.98 | 4.68 | 6.03 | 3.14 | 2.67 | 2.92 | 3.15 | 2.79 | 1.59 | 1.71 | 1.92 | 1.65 | 1.56 | 1.67 | 1.84 | 1.71 | 1.65 | 1.73 | 1.85 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||||||||
| lululemon athletica inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
| Nike Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30), 10-K (reporting date: 2012-08-31), 10-Q (reporting date: 2012-05-31), 10-Q (reporting date: 2012-02-29), 10-Q (reporting date: 2011-11-30).
1 Q2 2018 Calculation
Financial leverage = Total assets ÷ Total Monsanto Company shareowners’ equity
= 22,687 ÷ 7,754 = 2.93
2 Click competitor name to see calculations.
- Total Assets
- The total assets show a fluctuating pattern over the examined periods. There is a general upward trend from November 2011 to November 2013, increasing from approximately 20.4 billion US dollars to 24.1 billion US dollars. Following this peak, total assets experience some volatility but tend to decline gradually from late 2013 through early 2016, hitting a low near 19.4 billion US dollars in February 2016. Subsequently, total assets recover moderately, increasing again to around 23.1 billion US dollars by November 2017 and maintaining a similar level through February 2018.
- Total Shareowners’ Equity
- The equity values demonstrate significant variability and a less consistent trend compared to total assets. Initially, equity rises steadily from about 11.0 billion US dollars in November 2011 to a peak near 14.7 billion US dollars in May 2014. However, after May 2014, there is a sharp decline to roughly 7.4 billion US dollars by November 2014. Following this drop, equity fluctuates noticeably, with values oscillating between approximately 3.6 billion and 8.3 billion US dollars from 2015 through early 2018. While some recovery is noted toward the end of the period, equity remains substantially lower than its earlier peak.
- Financial Leverage
- Financial leverage exhibits considerable fluctuations and a general trend of increase across the time frame. Starting at 1.85 in November 2011, leverage declines slightly and remains below 2.0 until early 2014. From mid-2014, the ratio escalates dramatically, reaching a peak of 6.03 in November 2015. After this peak, leverage declines but stays elevated relative to earlier years, fluctuating between approximately 2.9 and 4.7 until early 2018. The heightened leverage ratios from mid-2014 to 2018 suggest increased reliance on debt financing or reduction in equity.
- Overall Insights
- The concurrent decline in shareowners’ equity and increase in financial leverage around 2014–2015 may indicate significant changes in capital structure, possibly reflecting increased debt or asset write-downs. The decline in total assets during the same period supports the hypothesis of asset disposals or impairments. Despite partial recovery in total assets by late 2017, equity remains depressed relative to its earlier high, and leverage remains elevated, suggesting a more leveraged financial position during the latter periods. These patterns highlight notable financial restructuring or challenges affecting equity and risk profile.
Interest Coverage
Monsanto Co., interest coverage calculation (quarterly data)
Based on: 10-Q (reporting date: 2018-02-28), 10-Q (reporting date: 2017-11-30), 10-K (reporting date: 2017-08-31), 10-Q (reporting date: 2017-05-31), 10-Q (reporting date: 2017-02-28), 10-Q (reporting date: 2016-11-30), 10-K (reporting date: 2016-08-31), 10-Q (reporting date: 2016-05-31), 10-Q (reporting date: 2016-02-29), 10-Q (reporting date: 2015-11-30), 10-K (reporting date: 2015-08-31), 10-Q (reporting date: 2015-05-31), 10-Q (reporting date: 2015-02-28), 10-Q (reporting date: 2014-11-30), 10-K (reporting date: 2014-08-31), 10-Q (reporting date: 2014-05-31), 10-Q (reporting date: 2014-02-28), 10-Q (reporting date: 2013-11-30), 10-K (reporting date: 2013-08-31), 10-Q (reporting date: 2013-05-31), 10-Q (reporting date: 2013-02-28), 10-Q (reporting date: 2012-11-30), 10-K (reporting date: 2012-08-31), 10-Q (reporting date: 2012-05-31), 10-Q (reporting date: 2012-02-29), 10-Q (reporting date: 2011-11-30).
1 Q2 2018 Calculation
Interest coverage
= (EBITQ2 2018
+ EBITQ1 2018
+ EBITQ4 2017
+ EBITQ3 2017)
÷ (Interest expenseQ2 2018
+ Interest expenseQ1 2018
+ Interest expenseQ4 2017
+ Interest expenseQ3 2017)
= (1,944 + 354 + -31 + 1,177)
÷ (105 + 124 + 114 + 100)
= 7.77
The earnings before interest and tax (EBIT) demonstrate significant volatility over the reported periods. Initially, EBIT exhibited elevated values, reaching a peak of 2,380 million US dollars in February 2014. However, this was followed by several quarters with negative EBIT values, such as -238 million in August 2012 and -554 million in August 2015, indicating periods of operational losses. Post-2015, EBIT recovered somewhat, with values fluctuating generally between negative and positive territory, illustrating inconsistency in operational profitability.
Interest expense has shown a notable upward trend across the examined quarters. Starting at 53 million US dollars in November 2011, interest expenses initially fluctuated within a moderate range but began to increase more consistently from 2013 onwards. The highest recorded interest expenses were 136 million in February 2017, signifying increased borrowing costs or higher debt levels during later years.
The interest coverage ratio, which measures the company's ability to meet its interest obligations from EBIT, reveals a downward trend over time. Early ratios surpassed 16, indicating substantial EBIT relative to interest costs. However, from 2014 forward, this metric declines steadily, dipping below 10 in multiple quarters and approaching values around 4 to 8 by 2017 and 2018. This decline signals deteriorating capacity to cover interest expenses comfortably, reflecting pressures on operating earnings or growing interest obligations.
Overall, the data reflect challenges in maintaining consistent earnings performance coupled with rising interest expenses, leading to a declining cushion in interest coverage. These dynamics suggest a growing financial risk profile, with operational earnings showing instability and debt service requirements increasing relative to earnings capacity over the analyzed periods.