Analysis of Reportable Segments
Monsanto Co. operates in 2 segments: Seeds and Genomics and Agricultural Productivity.
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Assets (ROA) since 2005
- Price to Book Value (P/BV) since 2005
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Segment Profit Margin
Monsanto Co., profit margin by reportable segment
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity |
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).
- Seeds and Genomics Profit Margin
- The profit margin for the Seeds and Genomics segment shows a fluctuating yet generally stable trend over the six-year period. Starting at 26.25% in 2012, the margin declined to a low of 21.54% in 2015. This was followed by a recovery, with the margin rising to 26.67% by 2017, the highest in the observed period. The pattern indicates some volatility but ultimately a return to and slight improvement above the initial margin level.
- Agricultural Productivity Profit Margin
- The Agricultural Productivity segment exhibits a more volatile profit margin trend compared to Seeds and Genomics. It began at a low 12.84% in 2012, then significantly increased to 27.2% by 2015, representing strong performance improvement. However, this positive trend reversed sharply after 2015, with margins dropping drastically to 3.3% in 2016 and only partially recovering to 9.47% in 2017. This pattern suggests the segment faced considerable challenges post-2015, eroding profitability despite earlier gains.
- Overall Insights
- The contrasting trends indicate that while the Seeds and Genomics segment maintained relative stability and ended with improved profitability, the Agricultural Productivity segment experienced a peak followed by a significant decline. This divergence may signal differing operational conditions or external factors impacting the segments uniquely during the latter part of the period.
Segment Profit Margin: Seeds and Genomics
Monsanto Co.; Seeds and Genomics; segment profit margin calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| EBIT | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2017 Calculation
Segment profit margin = 100 × EBIT ÷ Net sales
= 100 × ÷ =
The data indicates several notable trends within the Seeds and Genomics segment over the six-year period ending August 31, 2017.
- EBIT (Earnings Before Interest and Taxes)
- The EBIT figures exhibit some fluctuation throughout the period. Beginning at 2,570 million US dollars in 2012, EBIT decreased slightly in 2013 but rebounded in 2014. A decline is observed again in 2015 and 2016, reaching a low of 2,206 million US dollars in 2015. However, there is a marked recovery in 2017, with EBIT increasing to 2,910 million US dollars, the highest level in the six-year span. This trajectory suggests a period of volatility with a strong upswing in the final year.
- Net Sales
- Net sales demonstrate a generally upward trend, starting from 9,789 million US dollars in 2012 and peaking at 10,740 million US dollars in 2014. This peak is followed by a slight declining phase, with sales decreasing to 9,988 million US dollars in 2016. The final year in the range shows a rebound to 10,913 million US dollars, the highest recorded during this span. Overall, the sales figures indicate relative stability and growth with some intermediate periods of contraction.
- Segment Profit Margin
- The segment profit margin reflects the profitability relative to net sales. Beginning at 26.25% in 2012, a gradual reduction is seen reaching a trough of 21.54% in 2015. Following this low, there is a recovery through to 2017, when the margin rises to 26.67%, exceeding the initial 2012 level. This pattern suggests a compression of profit margins mid-period that was successfully reversed by 2017, improving the segment’s overall profitability.
In summary, the segment experienced fluctuations in operational earnings and profitability margins over the period, accompanied by relatively stable and gradually increasing net sales. The improved EBIT and segment profit margin in the final year indicate enhanced operational efficiency or favorable business conditions in 2017 compared to earlier years.
Segment Profit Margin: Agricultural Productivity
Monsanto Co.; Agricultural Productivity; segment profit margin calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| EBIT | ||||||
| Net sales | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2017 Calculation
Segment profit margin = 100 × EBIT ÷ Net sales
= 100 × ÷ =
- EBIT (Earnings Before Interest and Taxes)
- EBIT exhibited a notable increase from 477 million US dollars in 2012 to a peak of 1,345 million US dollars in 2014. Following this peak, there was a slight decline to 1,294 million US dollars in 2015. Subsequently, a sharp decrease occurred, with EBIT falling to 116 million US dollars in 2016, before partially recovering to 353 million US dollars in 2017. Overall, EBIT demonstrates volatility with an upward trend in the initial years and significant fluctuations in the later periods.
- Net Sales
- Net sales rose steadily from 3,715 million US dollars in 2012 to a maximum of 5,115 million US dollars in 2014. After 2014, sales declined to 4,758 million in 2015, followed by a sharper drop to 3,514 million in 2016. A modest increase was observed in 2017, bringing net sales to 3,727 million US dollars. The data reveals strong growth up to 2014, with a subsequent downturn and partial recovery toward the end of the period.
- Segment Profit Margin
- The segment profit margin showed a significant improvement from 12.84% in 2012 to 27.2% in 2015, indicating an increase in profitability relative to sales. However, there was a dramatic decline to 3.3% in 2016, followed by a recovery to 9.47% in 2017. This pattern suggests that profitability was strongly impacted by factors in 2016, with some stabilization observed in the following year.
- Summary of Trends and Insights
- The segment’s financial performance demonstrated strong growth in both earnings and sales until 2014, accompanied by an improving profit margin. The period after 2014 was marked by declines in net sales and EBIT, with particularly sharp decreases in 2016. Profitability was severely affected in 2016 as shown by the steep drop in segment profit margin. Although there was some rebound in 2017, EBIT and profit margins remained well below peak levels earlier in the period. This indicates potential challenges affecting operational efficiency or market conditions starting around 2015-2016, leading to instabilities that persisted into 2017 despite partial recovery efforts.
Segment Return on Assets (Segment ROA)
Monsanto Co., ROA by reportable segment
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity |
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).
- Seeds and Genomics Segment ROA
- The return on assets (ROA) for the Seeds and Genomics segment exhibited a fluctuating pattern over the periods analyzed. Initially, it decreased slightly from 16.12% in 2012 to 14.85% in 2013 and remained nearly stable in 2014 at 14.81%. A more notable decline occurred in 2015, dropping to 12.73%, indicating potentially reduced asset efficiency or profitability during that year. However, this segment demonstrated a recovery trend thereafter, with ROA increasing to 14.53% in 2016 and further rising to a peak value of 17.35% in 2017. Overall, the Seeds and Genomics segment showed resilience with a moderate dip mid-period but an eventual improvement surpassing its initial margin.
- Agricultural Productivity Segment ROA
- The Agricultural Productivity segment showed a markedly more volatile ROA trend over the same period. Starting at 11.14% in 2012, it experienced a sharp and substantial increase to 23.72% in 2013, reaching a further peak of 30.69% in 2014, which suggests a period of strong asset utilization and profitability. This high level was maintained relatively well in 2015 with a small decline to 28.19%. However, a significant contraction occurred in 2016, where ROA plummeted to 2.93%, indicating a drastic reduction in operational efficiency or increased asset base without corresponding profit generation. A partial recovery was noted in 2017, with ROA increasing to 7.73%, yet remaining well below earlier peak values. This pattern suggests a period of considerable instability or structural changes affecting the segment's financial returns.
- Overall Insights
- The Seeds and Genomics segment maintained a generally stable return across the years with minor mid-cycle weakness but a rebound towards the end of the period. In contrast, the Agricultural Productivity segment experienced a dramatic rise and subsequent steep decline in ROA, signaling possible challenges or changes that impacted asset profitability after 2015. The contrasting trajectories imply differing operational dynamics or market conditions impacting the two segments during these years.
Segment ROA: Seeds and Genomics
Monsanto Co.; Seeds and Genomics; segment ROA calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| EBIT | ||||||
| Total assets | ||||||
| Segment Profitability Ratio | ||||||
| Segment ROA1 | ||||||
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).
1 2017 Calculation
Segment ROA = 100 × EBIT ÷ Total assets
= 100 × ÷ =
- EBIT (Earnings Before Interest and Taxes)
- The EBIT figures demonstrate some fluctuations over the six-year period. Beginning at 2,570 million USD in 2012, there was a slight decline in 2013 to 2,412 million USD, followed by a recovery in 2014 to 2,607 million USD. However, the earnings dipped noticeably in 2015 to 2,206 million USD and showed a minor increase in 2016 to 2,292 million USD. A significant improvement is evident in 2017, with EBIT rising sharply to 2,910 million USD, reaching the highest level in the observed period.
- Total Assets
- Total assets increased gradually from 15,944 million USD in 2012 to a peak of 17,598 million USD in 2014. Subsequently, there was a decline over the next two years, reaching 15,772 million USD in 2016. In 2017, total assets rebounded moderately to 16,768 million USD. The asset base therefore shows a growth trend with some volatility, reflecting possible investment cycles or asset revaluations during the period.
- Segment Return on Assets (ROA)
- The segment ROA experienced a downward trend initially, decreasing from 16.12% in 2012 to 12.73% in 2015. This decline suggests diminishing efficiency in asset utilization or profitability during this timeframe. However, ROA recovered to 14.53% in 2016 and rose further to 17.35% in 2017, surpassing the initial 2012 level. The improvement from 2016 onwards indicates enhanced operational performance or more effective deployment of assets within the segment.
- General Observations
- Overall, the data indicates a period of variability in both profitability and asset management between 2012 and 2017. The initial years show some erosion in both EBIT and ROA, coupled with asset growth, which might point to challenges in integrating or capitalizing on increased assets. The latter years, particularly 2017, reveal stronger profitability and better return on assets, implying a possible strategic turnaround or operational improvements during that time.
Segment ROA: Agricultural Productivity
Monsanto Co.; Agricultural Productivity; segment ROA calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| EBIT | ||||||
| Total assets | ||||||
| Segment Profitability Ratio | ||||||
| Segment ROA1 | ||||||
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).
1 2017 Calculation
Segment ROA = 100 × EBIT ÷ Total assets
= 100 × ÷ =
The financial data for the Agricultural Productivity segment reveals varied performance trends over the six-year period ending August 31, 2017. Earnings Before Interest and Taxes (EBIT) initially experienced a strong upward trajectory, increasing from $477 million in 2012 to a peak of $1,345 million in 2014. Following this peak, EBIT values declined substantially to $116 million by 2016, before a partial recovery to $353 million in 2017.
Total assets within the segment showed relative stability with minor fluctuations. Starting at $4,280 million in 2012, the asset base increased gradually to $4,590 million in 2015. However, a decline was observed in 2016, where total assets decreased to $3,964 million, before rebounding to $4,565 million in 2017. This pattern suggests a possible divestiture or asset restructuring event in 2016, followed by asset replenishment or acquisition in the subsequent year.
Segment Return on Assets (ROA) mirrored the EBIT trend, increasing significantly from 11.14% in 2012 to a high of 30.69% in 2014. This was followed by a slight decline to 28.19% in 2015, and then a dramatic drop to 2.93% in 2016, reflecting a sharp fall in profitability relative to the asset base. In 2017, ROA recovered modestly to 7.73%, remaining substantially lower than the peak years but indicating a positive turnaround.
In summary, the segment experienced robust profit growth and asset expansion early in the period, reaching peak profitability in 2014. The subsequent years were marked by a notable decline in earnings and profitability ratios, coinciding with a temporary reduction in total assets. The partial rebound in 2017 suggests efforts towards operational recovery, although profitability remained significantly below earlier highs.
Segment Asset Turnover
Monsanto Co., asset turnover by reportable segment
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity |
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).
- Seeds and Genomics Segment Asset Turnover
- The asset turnover ratio for the Seeds and Genomics segment exhibits slight fluctuations over the analyzed years. Starting at 0.61 in 2012, the ratio experiences a moderate increase in 2013 to 0.64, then returns to 0.61 in 2014. A marginal decline is observed in 2015, down to 0.59, followed by a gradual recovery to 0.63 in 2016 and a further rise to 0.65 in 2017. Overall, the ratio maintained relative stability, with a minor upward trend toward the end of the period, indicating a consistent level of asset utilization in generating sales.
- Agricultural Productivity Segment Asset Turnover
- The asset turnover ratio for the Agricultural Productivity segment shows a more pronounced variability across the reporting periods. Beginning at a ratio of 0.87 in 2012, there is a steady increase reaching a peak of 1.17 in 2014, reflecting improved efficiency in asset use. However, this is followed by a decline to 1.04 in 2015. The downward trend continues with the ratio falling to 0.89 in 2016 and further to 0.82 in 2017. These changes suggest that, after a period of growth in asset turnover efficiency, the segment experienced decreasing effectiveness in utilizing its assets to generate revenue from 2015 onwards.
- Comparative Insights
- When comparing the two segments, the Agricultural Productivity segment initially demonstrates higher asset turnover ratios than Seeds and Genomics, indicating higher operational efficiency in utilizing assets to generate sales up to 2014. Nevertheless, this advantage diminishes as the asset turnover for Agricultural Productivity declines noticeably after 2014, converging toward the range of the Seeds and Genomics segment by 2017. Conversely, Seeds and Genomics maintains a relatively steady performance with slight improvement, suggesting stable asset management practices within that segment over the period.
Segment Asset Turnover: Seeds and Genomics
Monsanto Co.; Seeds and Genomics; segment asset turnover calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | ||||||
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).
1 2017 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
- Net Sales
- Net sales for the Seeds and Genomics segment demonstrated a fluctuating trend over the six-year period. Starting at $9,789 million in 2012, sales increased to $10,340 million in 2013 and peaked at $10,740 million in 2014. Following this peak, net sales declined to $10,243 million in 2015 and further to $9,988 million in 2016. The segment rebounded in 2017, reaching $10,913 million, the highest level in the observed period.
- Total Assets
- Total assets generally increased from 2012 through 2014, growing from $15,944 million to $17,598 million. In 2015, total assets slightly decreased to $17,330 million and then showed a more pronounced decline in 2016 to $15,772 million. A recovery occurred in 2017, with total assets rising again to $16,768 million. Despite some volatility, the overall asset base remained relatively stable with minor fluctuations towards the end of the period.
- Segment Asset Turnover
- The segment asset turnover ratio exhibited modest variation during the period. Starting at 0.61 in 2012, the ratio increased to 0.64 in 2013 but fell back to 0.61 in 2014. The ratio declined further in 2015 to 0.59, indicating a slight decrease in sales efficiency relative to assets. However, in the final two years, asset turnover improved to 0.63 in 2016 and peaked at 0.65 in 2017, suggesting enhanced effectiveness in utilizing assets to generate sales.
- Overall Analysis
- The Seeds and Genomics segment exhibited moderate growth and resilience over the six-year period. While net sales fluctuated, with a notable dip in the middle years followed by recovery in 2017, the asset base also experienced variances but remained within a consistent range. The segment asset turnover ratio suggests that after a period of declining efficiency, the company improved its asset utilization in the latter years. These trends imply operational adjustments that enhanced performance and asset productivity despite market or internal challenges during the mid-cycle years.
Segment Asset Turnover: Agricultural Productivity
Monsanto Co.; Agricultural Productivity; segment asset turnover calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net sales | ||||||
| Total assets | ||||||
| Segment Activity Ratio | ||||||
| Segment asset turnover1 | ||||||
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).
1 2017 Calculation
Segment asset turnover = Net sales ÷ Total assets
= ÷ =
The data reveals several notable trends in the "Agricultural Productivity" segment over the six-year period ending August 31, 2017.
- Net Sales
- Net sales exhibited a rising trend from 2012 through 2014, increasing from 3,715 million US dollars to a peak of 5,115 million US dollars in 2014. However, in the subsequent years, net sales declined sharply, dropping to 4,758 million in 2015 and declining further to 3,514 million in 2016. A modest recovery occurred in 2017, with sales increasing to 3,727 million US dollars, though still well below the peak in 2014.
- Total Assets
- Total assets showed moderate fluctuations during the period. There was a gradual increase from 4,280 million US dollars in 2012 to 4,590 million in 2015. Following this, assets contracted to 3,964 million in 2016 before recovering again to 4,565 million by 2017. Overall, total assets remained within a range of approximately 3,900 to 4,600 million US dollars.
- Segment Asset Turnover Ratio
- The segment asset turnover ratio, measuring efficiency in utilizing assets to generate sales, improved from 0.87 in 2012 to a high of 1.17 in 2014. This suggests enhanced efficiency or productivity during the peak sales period. However, after 2014, the ratio declined annually, reaching 0.82 in 2017, the lowest level within the observed timeframe. This reduction indicates deteriorating asset utilization efficiency in the later years.
In summary, the segment experienced growth in both sales and efficiency until 2014, with subsequent declines in sales and asset turnover suggesting challenges in maintaining prior performance levels. Total assets demonstrated sensitivity to operational activity, contracting during periods of declining sales but rebounding as conditions improved. The overall pattern points to a period of expansion followed by contraction and modest recovery, coupled with a downward trend in asset utilization efficiency after 2014.
Segment Capital Expenditures to Depreciation
Monsanto Co., capital expenditures to depreciation by reportable segment
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity |
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).
- Seeds and Genomics Segment
- The capital expenditures to depreciation ratio for the Seeds and Genomics segment exhibited an overall increasing trend from 2012 to 2014, rising from 0.97 to 1.46. This was followed by a slight decline in 2015 and 2016, where the ratio decreased to 1.30 and 1.23 respectively. In 2017, the ratio showed a modest recovery, increasing to 1.29. This pattern suggests an initial period of growing investment relative to asset depreciation, followed by a stabilization phase with moderately fluctuating capital expenditure levels.
- Agricultural Productivity Segment
- The Agricultural Productivity segment experienced more pronounced variability in its capital expenditures to depreciation ratio across the six-year period. The ratio started at 1.37 in 2012, then sharply declined to 1.02 in 2013, indicating a reduction in investment relative to depreciation. Subsequently, the ratio increased to 1.41 in 2014 and continued rising to 1.58 in 2015. After a slight dip to 1.46 in 2016, the ratio surged significantly to 2.96 in 2017. This pronounced increase in the final year suggests a substantial escalation in capital expenditures compared to depreciation, possibly reflecting accelerated investment or expansion initiatives within this segment.
- Comparative Insights
- Comparing both segments, Agricultural Productivity showed greater volatility and a higher peak ratio than Seeds and Genomics. While Seeds and Genomics maintained a relatively stable ratio slightly above 1.0, Agricultural Productivity displayed more dynamic movement, culminating in a nearly threefold ratio in 2017. The data imply different capital management strategies between the segments, with Agricultural Productivity possibly undergoing a phase of intensified capital investment relative to asset depreciation during the latter years.
Segment Capital Expenditures to Depreciation: Seeds and Genomics
Monsanto Co.; Seeds and Genomics; segment capital expenditures to depreciation calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Property, plant and equipment purchases | ||||||
| Depreciation and amortization expense | ||||||
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | ||||||
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).
1 2017 Calculation
Segment capital expenditures to depreciation = Property, plant and equipment purchases ÷ Depreciation and amortization expense
= ÷ =
- Property, plant and equipment purchases
- The capital investments in property, plant, and equipment exhibited notable fluctuations over the observed periods. Beginning at 493 million US dollars in 2012, purchases increased significantly to 831 million in 2014. This peak was followed by a decline to 727 million in 2016, with a slight recovery to 757 million in 2017. Overall, the trend indicates a period of heightened investment in mid-cycle, stabilizing thereafter at a level above the initial amount.
- Depreciation and amortization expense
- Depreciation and amortization expenses demonstrated relative stability throughout the timeframe. Starting at 510 million US dollars in 2012, expenses experienced a slight decrease in 2013 to 495 million, then increased steadily to 593 million by 2016 before a marginal reduction to 585 million in 2017. The pattern suggests consistent asset utilization and gradual aging of capital assets with minor year-to-year variations.
- Segment capital expenditures to depreciation ratio
- The ratio of capital expenditures to depreciation reveals investment intensity relative to asset aging. The metric rose from 0.97 in 2012 to a peak of 1.46 in 2014, indicating that capital expenditures exceeded depreciation by a considerable margin during this period. Subsequently, the ratio decreased to 1.23 in 2016 but remained above 1, ending at 1.29 in 2017. This suggests sustained reinvestment in the segment’s assets, maintaining a level of capital expenditure generally higher than depreciation expenses, which may support future growth or modernization.
Segment Capital Expenditures to Depreciation: Agricultural Productivity
Monsanto Co.; Agricultural Productivity; segment capital expenditures to depreciation calculation
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Property, plant and equipment purchases | ||||||
| Depreciation and amortization expense | ||||||
| Segment Financial Ratio | ||||||
| Segment capital expenditures to depreciation1 | ||||||
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).
1 2017 Calculation
Segment capital expenditures to depreciation = Property, plant and equipment purchases ÷ Depreciation and amortization expense
= ÷ =
- Property, plant and equipment purchases
- There is an overall increasing trend in property, plant, and equipment purchases over the six-year period. Starting at $153 million in 2012, purchases decreased to $122 million in 2013 but then generally rose, reaching a peak of $483 million in 2017. The substantial increase in 2017 represents a significant capital investment compared to prior years.
- Depreciation and amortization expense
- Depreciation and amortization expenses have gradually increased each year from $112 million in 2012 to $163 million in 2017. This steady upward trend reflects ongoing asset usage and amortization consistent with the capital investments made over the period.
- Segment capital expenditures to depreciation ratio
- The ratio demonstrates variability over the years. It starts at 1.37 in 2012, declines to 1.02 in 2013, and then increases steadily to 1.58 in 2015 before slightly decreasing to 1.46 in 2016. In 2017, there is a notable jump to 2.96, indicating a significant increase in capital expenditures relative to depreciation expense. This spike corresponds with the sharp rise in purchases in 2017, suggesting accelerated investment activity in that year.
Net sales
Monsanto Co., net sales by reportable segment
US$ in millions
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity | ||||||
| Total |
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).
- Seeds and Genomics Segment
-
The Seeds and Genomics segment shows a generally positive trajectory over the period analyzed. Starting from US$ 9,789 million in August 2012, there is a continuous increase until August 2014, reaching US$ 10,740 million. After a slight decline during 2015 and 2016, with values of US$ 10,243 million and US$ 9,988 million respectively, there is a notable rebound in 2017, rising to US$ 10,913 million. Overall, this segment demonstrates resilience and a strong recovery following the mid-period dip.
- Agricultural Productivity Segment
-
The Agricultural Productivity segment exhibits more volatility over the years. It begins at US$ 3,715 million in 2012 and increases steadily to a peak of US$ 5,115 million in 2014. However, after this peak, there is a marked decrease, falling sharply to US$ 3,514 million by 2016. A minor recovery to US$ 3,727 million is observed in 2017, but the value remains significantly below the mid-period high. This pattern suggests sensitivity to market or operational factors during the latter years in this segment.
- Total Net Sales
-
Total net sales reflect the combined effect of the two segments. There is an upward trend from US$ 13,504 million in 2012 to a peak of US$ 15,855 million in 2014. Following this, total sales decline to US$ 13,502 million in 2016, mirroring the downturn observed in the Agricultural Productivity segment. Partial recovery is seen in 2017 with sales rising to US$ 14,640 million. The overall trend suggests that while growth was solid during the early years, challenges affected total sales mid-decade, with some recovery evident at the end of the period.
EBIT
Monsanto Co., ebit by reportable segment
US$ in millions
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity | ||||||
| Total |
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).
- Seeds and Genomics Segment EBIT
- The earnings before interest and taxes (EBIT) for the Seeds and Genomics segment displayed a fluctuating trend over the six-year period. Starting at $2,570 million in 2012, there was a slight decrease to $2,412 million in 2013, followed by a rebound to $2,607 million in 2014. Subsequently, EBIT declined to $2,206 million in 2015 but then gradually increased to $2,292 million in 2016 and reached a peak of $2,910 million in 2017. Overall, this segment experienced moderate volatility with a notable recovery in the final year, surpassing the initial value from 2012.
- Agricultural Productivity Segment EBIT
- The Agricultural Productivity segment exhibited significant variability over the observed timeframe. Starting at $477 million in 2012, EBIT more than doubled to $1,048 million in 2013 and further increased to $1,345 million in 2014. However, the following year saw a slight decrease to $1,294 million in 2015. A sharp decline occurred in 2016 with EBIT dropping severely to $116 million, representing a steep downturn in profitability. In 2017, the segment partially recovered to $353 million but remained markedly below the peak levels observed in 2013 and 2014. This trend suggests high sensitivity to underlying factors impacting this business area.
- Total EBIT
- The total EBIT figures illustrate an overall upward trajectory during the early years, increasing from $3,047 million in 2012 to a peak of $3,952 million in 2014. A decline followed in 2015 to $3,500 million, which was then followed by a more pronounced drop to $2,408 million in 2016. This sharp reduction aligns with the significant decrease seen in the Agricultural Productivity segment that year. The total EBIT rebounded in 2017 to $3,263 million, closing the year below the earlier peak but above the initial 2012 level. The movement in total EBIT reflects the combined influences of fluctuations within both segments, with the Agricultural Productivity segment being a key driver of volatility.
Depreciation and amortization expense
Monsanto Co., depreciation and amortization expense by reportable segment
US$ in millions
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity | ||||||
| Total |
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).
The depreciation and amortization expense data across the two main reportable segments exhibit noticeable trends over the six-year period ending August 31, 2017.
- Seeds and Genomics Segment
- This segment shows a generally stable depreciation and amortization expense with minor fluctuations. Starting at $510 million in 2012, the expense slightly decreased to $495 million in 2013 but rebounded in the following years, peaking at $593 million in 2016 before a modest decline to $585 million in 2017. Overall, the expenses in this segment remain relatively consistent, indicating a steady level of capital asset usage or amortization schedules over the years.
- Agricultural Productivity Segment
- In contrast, the Agricultural Productivity segment demonstrates a clear upward trend in depreciation and amortization expenses. Beginning at $112 million in 2012, the expense exhibits incremental increases each year, reaching $163 million by 2017. This upward trajectory suggests either increased capital expenditures, additions to amortizable assets, or changes in asset valuation methods impacting this segment.
- Total Depreciation and Amortization Expense
- The aggregate depreciation and amortization expense reflects the combined effect of the two segments, increasing steadily from $622 million in 2012 to $748 million in 2017. The overall growth of $126 million over the period corresponds largely to the increase within the Agricultural Productivity segment, given the relative stability of the Seeds and Genomics segment's expenses.
In summary, the data indicates that while the Seeds and Genomics segment's depreciation and amortization expenses have remained fairly stable with minor year-to-year variations, the Agricultural Productivity segment has experienced significant and consistent growth in these expenses. This divergence suggests strategic investment or capital asset growth in the Agricultural Productivity area, contributing to the overall increase in the company's depreciation and amortization expense over the observed period.
Total assets
Monsanto Co., total assets by reportable segment
US$ in millions
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity | ||||||
| Total |
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).
- Seeds and Genomics Segment
- The total assets in this segment exhibit a generally positive trend from 2012 to 2017, starting at 15,944 million USD in 2012 and reaching 16,768 million USD in 2017. There was steady growth until 2014, when assets peaked at 17,598 million USD, followed by a slight decline in 2015 and a more noticeable drop in 2016 to 15,772 million USD. However, the segment recovers in 2017 with an increase to 16,768 million USD, indicating resilience and potential stabilization after the fluctuation.
- Agricultural Productivity Segment
- This segment's total assets show more variability over the six-year period. Beginning at 4,280 million USD in 2012, assets increased modestly until 2013 but then fluctuated in the range of approximately 4,000 to 4,600 million USD. Notably, after a dip to 3,964 million USD in 2016, the segment rebounds to 4,565 million USD in 2017. This pattern suggests episodic volatility but overall maintenance of asset levels within a relatively narrow band.
- Total Reportable Segment Assets
- The combined total assets reflect the trends observed in the constituent segments. Total assets increased from 20,224 million USD in 2012 to a high of 21,981 million USD in 2014. Subsequently, a plateau is observed through 2015 with a minor decrease, followed by a more pronounced decline in 2016 to 19,736 million USD. The assets then recover in 2017 to 21,333 million USD. The overall pattern shows growth punctuated by a dip in 2016, with a return to near-peak levels by the end of the observed period.
- General Observations
- The data indicates that the Seeds and Genomics segment constitutes the majority of total assets, implying its critical role in the company’s asset base. Both segments experienced asset value reductions in 2016, which could point to external or internal factors impacting asset valuation or operational scale during that period. The recovery in 2017 suggests reactive measures or market improvements that supported asset restoration. The fluctuations in the Agricultural Productivity segment are more pronounced relative to its size, indicating possibly higher sensitivity or different influencing dynamics compared to the Seeds and Genomics segment.
Property, plant and equipment purchases
Monsanto Co., property, plant and equipment purchases by reportable segment
US$ in millions
| Aug 31, 2017 | Aug 31, 2016 | Aug 31, 2015 | Aug 31, 2014 | Aug 31, 2013 | Aug 31, 2012 | |
|---|---|---|---|---|---|---|
| Seeds and Genomics | ||||||
| Agricultural Productivity | ||||||
| Total |
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).
The data on annual purchases of property, plant, and equipment across two reportable segments over six years reveals several notable trends.
- Seeds and Genomics Segment
-
This segment exhibits an overall upward trend in capital expenditure from 2012 through 2017, starting at $493 million and reaching $757 million. There was a significant increase from 2012 to 2014, peaking at $831 million in 2014. Following this peak, expenditures declined in 2015 and 2016 to $762 million and $727 million respectively, before recovering slightly in 2017 to $757 million.
- Agricultural Productivity Segment
-
Spending in this segment shows more volatility across the period. It began at $153 million in 2012 and declined to $122 million in 2013. From 2013, expenditures rose steadily reaching $205 million in 2015, then experienced a slight dip to $196 million in 2016. The most notable change occurred in 2017, with the amount more than doubling to $483 million, marking the highest expenditure level in the six-year span.
- Total Capital Expenditure
-
Total investments in property, plant, and equipment displayed a rising trend overall, growing from $646 million in 2012 to $1,240 million in 2017. After a steady increase through 2014, peaking at $1,005 million, there was a moderate decline over the next two years to $923 million in 2016. The substantial increase in 2017 drove total expenditures to their highest point, largely influenced by the sharp rise in the Agricultural Productivity segment.
Overall, the data indicates a strategic focus on increasing investment in assets related to both segments over time, with particular acceleration in the Agricultural Productivity segment during the final year observed. This suggests renewed emphasis or expansion in that area, while investment in Seeds and Genomics remains relatively stable with slight cyclical variations.