Stock Analysis on Net

Mosaic Co. (NYSE:MOS)

This company has been moved to the archive! The financial data has not been updated since August 2, 2022.

Financial Reporting Quality: Aggregate Accruals 

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Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Mosaic Co., balance sheet computation of aggregate accruals

US$ in thousands

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Operating Assets
Total assets 22,036,400 19,789,800 19,298,500 20,119,200 18,633,400
Less: Cash and cash equivalents 769,500 574,000 519,100 847,700 2,153,500
Operating assets 21,266,900 19,215,800 18,779,400 19,271,500 16,479,900
Operating Liabilities
Total liabilities 11,287,900 10,034,600 9,930,900 9,514,500 8,994,300
Less: Short-term debt 302,800 100 41,600 11,500 6,100
Less: Current maturities of long-term debt 596,600 504,200 47,200 26,000 343,500
Less: Structured accounts payable arrangements 743,700 640,000 740,600 572,800 386,200
Less: Long-term debt, less current maturities 3,382,200 4,073,800 4,525,500 4,491,500 4,878,100
Operating liabilities 6,262,600 4,816,500 4,576,000 4,412,700 3,380,400
 
Net operating assets1 15,004,300 14,399,300 14,203,400 14,858,800 13,099,500
Balance-sheet-based aggregate accruals2 605,000 195,900 (655,400) 1,759,300
Financial Ratio
Balance-sheet-based accruals ratio3 4.12% 1.37% -4.51% 12.59%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Linde plc -8.63% -1.19%
Balance-Sheet-Based Accruals Ratio, Industry
Materials -6.50% -1.46% 200.00%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Net operating assets = Operating assets – Operating liabilities
= 21,266,9006,262,600 = 15,004,300

2 2021 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2021 – Net operating assets2020
= 15,004,30014,399,300 = 605,000

3 2021 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 605,000 ÷ [(15,004,300 + 14,399,300) ÷ 2] = 4.12%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Mosaic Co. deteriorated earnings quality from 2020 to 2021.

Cash-Flow-Statement-Based Accruals Ratio

Mosaic Co., cash flow statement computation of aggregate accruals

US$ in thousands

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net earnings (loss) attributable to Mosaic 1,630,600 666,100 (1,067,400) 470,000 (107,200)
Less: Net cash provided by operating activities 2,187,000 1,582,600 1,095,400 1,409,800 935,500
Less: Net cash used in investing activities (1,322,300) (1,189,500) (1,360,900) (1,944,700) (667,800)
Cash-flow-statement-based aggregate accruals 765,900 273,000 (801,900) 1,004,900 (374,900)
Financial Ratio
Cash-flow-statement-based accruals ratio1 5.21% 1.91% -5.52% 7.19%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Linde plc -4.85% -3.11%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Materials -5.15% -3.54% -10.53%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 765,900 ÷ [(15,004,300 + 14,399,300) ÷ 2] = 5.21%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Mosaic Co. deteriorated earnings quality from 2020 to 2021.