Monsanto Co. (NYSE:MON)

The analysis of the financial turnover ratios reveals several noteworthy trends over the six-year period.

Net Fixed Asset Turnover

This ratio demonstrates a gradual decline from 3.09 in 2012 to 2.47 in 2017, with minor fluctuations. The highest value was observed in 2013 at 3.19, followed by a steady decrease each subsequent year. The decline suggests a decreasing efficiency in utilizing net fixed assets to generate sales over time.

Total Asset Turnover

The total asset turnover ratio remained relatively stable throughout the period, fluctuating between 0.67 and 0.72. It peaked at 0.72 in both 2013 and 2014 but then slightly decreased and stabilized around 0.68-0.69 through 2015 to 2017. This stability could indicate consistent generation of sales relative to total assets despite other changes in the business environment.

Equity Turnover

The equity turnover ratio shows a significant increase from 1.14 in 2012 to a peak of 2.98 in 2016, followed by a slight decline to 2.27 in 2017. The substantial rise between 2013 and 2016, particularly the jump from 2.15 in 2015 to 2.98 in 2016, suggests improved efficiency in using shareholders' equity to generate revenue. The drop in 2017, while notable, still reflects a higher turnover compared to earlier years.

Overall, the data indicates a declining trend in efficiency regarding net fixed assets, steady utilization of total assets, and a marked improvement in the use of equity to drive sales, especially between 2012 and 2016. The marginal reduction in equity turnover in the final year warrants further examination to understand underlying causes and implications.

Net Sales

Net sales exhibited an overall upward trend from 2012 to 2014, increasing from 13,504 million USD to a peak of 15,855 million USD in 2014. Subsequently, sales declined to 15,001 million USD in 2015 and further decreased to 13,502 million USD in 2016. The year 2017 showed a partial recovery with net sales rising again to 14,640 million USD.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment steadily increased over the entire period. Starting at 4,365 million USD in 2012, this asset category grew annually, reaching 5,930 million USD by 2017. This consistent increase suggests a continuous investment in fixed assets during these years.

Net Fixed Asset Turnover

The ratio of net fixed asset turnover, which measures how efficiently fixed assets generate sales, showed a declining trend throughout the period. It peaked at 3.19 in 2013, then steadily decreased to 2.47 by 2017. This decline indicates a reduction in the efficiency of asset utilization in generating net sales, possibly as a result of the increased investment in fixed assets outpacing sales growth.

Net Sales

Net sales demonstrated an overall upward trend from 2012 to 2017, increasing from 13,504 million USD in 2012 to a peak of 15,855 million USD in 2014. Following this peak, sales decreased to 13,502 million USD in 2016 but recovered somewhat in 2017 to 14,640 million USD. This pattern indicates some volatility but a generally strong revenue level throughout the period.

Total Assets

Total assets showed moderate fluctuations over the years. The value rose gradually from 20,224 million USD in 2012 to 21,981 million USD in 2014, followed by a slight decline to 19,736 million USD in 2016. By 2017, assets increased again to 21,333 million USD. This pattern suggests a degree of asset management activity with temporary reductions likely related to disposals or depreciation, followed by asset growth or acquisitions.

Total Asset Turnover

The total asset turnover ratio remained relatively stable, fluctuating slightly between 0.67 and 0.72 over the six-year period. The highest ratios occurred in 2013 and 2014 (0.72), coinciding with the highest net sales. From 2015 onward, the turnover decreased marginally to about 0.68-0.69, indicating a small reduction in efficiency in utilizing assets to generate sales but maintaining a consistent performance overall.

Summary

The financial data reveal that revenue generation has generally grown, notwithstanding some intermediary decreases. Asset levels experienced modest volatility but returned to near-peak values by 2017. Asset utilization efficiency as measured by total asset turnover remained stable with minor fluctuations, reflecting sustained operational effectiveness despite changes in sales and asset base. The company appears to have managed its asset base effectively to support sales generation over the timeframe.

Net Sales

Net sales exhibited a general upward trend from 2012 to 2014, increasing from 13,504 million US dollars to a peak of 15,855 million US dollars in 2014. However, a decline is observed in 2015 and 2016, where net sales decreased to 15,001 million and then further down to 13,502 million. In 2017, there is a recovery with net sales rising again to 14,640 million US dollars.

Total Shareowners’ Equity

There is a distinct downward trend in total shareowners’ equity over the period analyzed. Starting at 11,833 million US dollars in 2012, it initially rose to 12,559 million in 2013, then noticeably declined to 7,875 million in 2014. This downward momentum continued through to 2016, reaching a low of 4,534 million US dollars. A modest increase is recorded in 2017, with equity rising to 6,438 million, yet still below levels observed earlier in the period.

Equity Turnover Ratio

The equity turnover ratio demonstrates a significant upward trend over the six-year span. Beginning at 1.14 in 2012, it modestly increased to 1.18 in 2013 before nearly doubling in 2014 to 2.01. The ratio continued to increase steadily, reaching a peak of 2.98 in 2016. In 2017, there is a slight decline to 2.27, although this remains substantially higher than earlier years. This trend reflects a more efficient use of equity in generating sales despite the decreasing equity base.

Summary

Overall, the data shows net sales experienced volatility with initial growth followed by declines and partial recovery. Total shareowners’ equity consistently decreased after 2013, indicating possible financial restructuring or capital returns. The equity turnover ratio’s marked increase highlights improved efficiency in using equity to drive sales, likely compensating to some extent for the shrinking equity base. The combination of decreasing equity and rising equity turnover suggests significant changes in financial structure and operational efficiency within the reporting timeframe.