Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Mosaic Co., solvency ratios
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).
- Debt to Equity
- The debt to equity ratio exhibited moderate fluctuations over the period, starting at 0.58 in 2017, decreasing to 0.49 in 2018, then rising back to 0.58 in 2019, before gradually declining to 0.47 by 2021. When including operating lease liabilities, the pattern is similar, with a slightly higher peak in 2019 at 0.60 and ending at 0.49 in 2021. Overall, the ratio tends to show a slight downward trend toward the end of the period, indicating a modest reduction in reliance on debt relative to equity.
- Debt to Capital
- The debt to capital ratio mirrors the debt to equity trend, beginning at 0.37 in 2017, declining to 0.33 in 2018, rebounding to 0.37 in 2019, and then decreasing steadily to 0.32 by 2021. Including operating lease liabilities slightly increases the ratio, with 2019 peaking at 0.38 and 2021 at 0.33. This suggests a gradual improvement in capital structure management, with a lower proportion of debt in the total capital base over time.
- Debt to Assets
- The debt to assets ratio shows a consistent decline from 0.30 in 2017 to 0.23 in 2021. A minor uptick is observed in 2019 (0.28), but the overall pattern is downward. Including operating lease liabilities causes a slight increase in values, but the general trend persists. This indicates a strengthening asset base relative to debt levels or a reduction in debt financing relative to total assets.
- Financial Leverage
- Financial leverage remains relatively stable around 1.94 to 2.10 across the analyzed years. It rose slightly in 2019 to 2.10 and maintained a similar level through 2021 (2.08), suggesting steady use of debt compared to equity financing without significant volatility.
- Interest Coverage
- Interest coverage ratios exhibit notable volatility. The ratio improved slightly from 3.28 in 2017 to 3.53 in 2018, then declined sharply to a negative (−5.09) in 2019, indicating an inability to cover interest expenses at that time. Recovery began in 2020 with a low positive ratio (1.41), followed by a significant increase to 12.49 in 2021. This suggests a period of financial distress or lower earnings in 2019, followed by substantial improvement in profitability or interest expense management.
- Fixed Charge Coverage
- Fixed charge coverage shows a trend similar to interest coverage, with values declining from 2.37 in 2017 to 2.13 in 2018, then dropping to negative (−1.83) in 2019. Recovery is gradual with 1.20 in 2020 and a marked increase to 6.50 in 2021. The movement reflects challenges in meeting fixed financial obligations around 2019, followed by strengthening capacity to cover such charges by 2021.
Debt Ratios
Coverage Ratios
Debt to Equity
Mosaic Co., debt to equity calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 302,800) | 100) | 41,600) | 11,500) | 6,100) | |
| Current maturities of long-term debt | 596,600) | 504,200) | 47,200) | 26,000) | 343,500) | |
| Structured accounts payable arrangements | 743,700) | 640,000) | 740,600) | 572,800) | 386,200) | |
| Long-term debt, less current maturities | 3,382,200) | 4,073,800) | 4,525,500) | 4,491,500) | 4,878,100) | |
| Total debt | 5,025,300) | 5,218,100) | 5,354,900) | 5,101,800) | 5,613,900) | |
| Total Mosaic stockholders’ equity | 10,604,100) | 9,581,400) | 9,185,500) | 10,397,300) | 9,617,500) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.47 | 0.54 | 0.58 | 0.49 | 0.58 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Linde plc | 0.33 | 0.34 | — | — | — | |
| Sherwin-Williams Co. | 3.95 | 2.30 | — | — | — | |
| Debt to Equity, Sector | ||||||
| Chemicals | 0.52 | 0.48 | — | — | — | |
| Debt to Equity, Industry | ||||||
| Materials | 0.55 | 0.56 | — | — | — | |
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
Debt to equity = Total debt ÷ Total Mosaic stockholders’ equity
= 5,025,300 ÷ 10,604,100 = 0.47
2 Click competitor name to see calculations.
- Total Debt
- Total debt exhibited a fluctuating pattern over the observed periods. Starting at 5,613,900 thousand US dollars at the end of 2017, it decreased to 5,101,800 thousand in 2018, then rose again to 5,354,900 thousand in 2019. Subsequently, it declined slightly to 5,218,100 thousand in 2020 and further dropped to 5,025,300 thousand by the end of 2021. Overall, there is a gradual downward trend from 2017 to 2021, suggesting a reduction in total debt levels over these years.
- Total Mosaic Stockholders’ Equity
- Stockholders’ equity displayed more volatility during the five-year span. It started at 9,617,500 thousand US dollars at the end of 2017 and rose to a peak of 10,397,300 thousand in 2018. However, it then decreased to 9,185,500 thousand in 2019, before recovering to 9,581,400 thousand in 2020 and significantly increasing to 10,604,100 thousand by 2021. The equity shows an overall upward trend, with some fluctuations, indicating potential growth in shareholder value.
- Debt to Equity Ratio
- The debt to equity ratio reveals a generally declining trend, moving from 0.58 in 2017 to 0.47 in 2021. It decreased sharply to 0.49 in 2018, spiked back to 0.58 in 2019, then progressively declined through 2020 and 2021. This pattern suggests improving financial leverage, with the company reducing its reliance on debt relative to equity over the period. The reduced ratio in the later years indicates an enhancement in financial stability and potentially a lower risk profile.
Debt to Equity (including Operating Lease Liability)
Mosaic Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 302,800) | 100) | 41,600) | 11,500) | 6,100) | |
| Current maturities of long-term debt | 596,600) | 504,200) | 47,200) | 26,000) | 343,500) | |
| Structured accounts payable arrangements | 743,700) | 640,000) | 740,600) | 572,800) | 386,200) | |
| Long-term debt, less current maturities | 3,382,200) | 4,073,800) | 4,525,500) | 4,491,500) | 4,878,100) | |
| Total debt | 5,025,300) | 5,218,100) | 5,354,900) | 5,101,800) | 5,613,900) | |
| Short-term operating lease obligation | 59,700) | 64,000) | 67,100) | —) | —) | |
| Long-term operating lease obligation | 64,300) | 109,600) | 127,000) | —) | —) | |
| Total debt (including operating lease liability) | 5,149,300) | 5,391,700) | 5,549,000) | 5,101,800) | 5,613,900) | |
| Total Mosaic stockholders’ equity | 10,604,100) | 9,581,400) | 9,185,500) | 10,397,300) | 9,617,500) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.49 | 0.56 | 0.60 | 0.49 | 0.58 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.35 | 0.36 | — | — | — | |
| Sherwin-Williams Co. | 4.72 | 2.80 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.57 | 0.54 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Materials | 0.60 | 0.61 | — | — | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Mosaic stockholders’ equity
= 5,149,300 ÷ 10,604,100 = 0.49
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- Over the reviewed period, total debt demonstrated a fluctuating trend. Initially, there was a decrease from 5,613,900 thousand US dollars at the end of 2017 to 5,101,800 thousand US dollars in 2018. This was followed by an increase to 5,549,000 thousand US dollars in 2019, then a slight decline to 5,391,700 thousand US dollars in 2020, and another reduction to 5,149,300 thousand US dollars by the end of 2021. Overall, despite some ups and downs, the total debt at the end of the period was lower than at the start.
- Total Mosaic stockholders’ equity
- Stockholders’ equity displayed variability throughout the period. It increased from 9,617,500 thousand US dollars in 2017 to a peak of 10,397,300 thousand US dollars in 2018, then declined significantly to 9,185,500 thousand US dollars in 2019. Following this, equity rebounded to 9,581,400 thousand US dollars in 2020 and rose again substantially to 10,604,100 thousand US dollars in 2021. The equity position generally improved by the end of the period compared to the beginning, despite intermediate fluctuations.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio illustrated corresponding movements linked with changes in debt and equity levels. It decreased from 0.58 in 2017 to 0.49 in 2018, then increased to 0.60 in 2019. Subsequently, it declined to 0.56 in 2020 and returned to 0.49 in 2021, matching the lowest point observed during the period. This pattern suggests that leverage was managed actively, with the company achieving its lowest leverage ratios in 2018 and 2021, likely reflecting stronger equity positions relative to debt in those years.
Debt to Capital
Mosaic Co., debt to capital calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 302,800) | 100) | 41,600) | 11,500) | 6,100) | |
| Current maturities of long-term debt | 596,600) | 504,200) | 47,200) | 26,000) | 343,500) | |
| Structured accounts payable arrangements | 743,700) | 640,000) | 740,600) | 572,800) | 386,200) | |
| Long-term debt, less current maturities | 3,382,200) | 4,073,800) | 4,525,500) | 4,491,500) | 4,878,100) | |
| Total debt | 5,025,300) | 5,218,100) | 5,354,900) | 5,101,800) | 5,613,900) | |
| Total Mosaic stockholders’ equity | 10,604,100) | 9,581,400) | 9,185,500) | 10,397,300) | 9,617,500) | |
| Total capital | 15,629,400) | 14,799,500) | 14,540,400) | 15,499,100) | 15,231,400) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.32 | 0.35 | 0.37 | 0.33 | 0.37 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Linde plc | 0.25 | 0.26 | — | — | — | |
| Sherwin-Williams Co. | 0.80 | 0.70 | — | — | — | |
| Debt to Capital, Sector | ||||||
| Chemicals | 0.34 | 0.33 | — | — | — | |
| Debt to Capital, Industry | ||||||
| Materials | 0.36 | 0.36 | — | — | — | |
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
Debt to capital = Total debt ÷ Total capital
= 5,025,300 ÷ 15,629,400 = 0.32
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period ending December 31, 2021. Total debt exhibits a fluctuating pattern, initially declining from 5,613,900 thousand US dollars in 2017 to 5,101,800 thousand US dollars in 2018, followed by a rise to 5,354,900 thousand US dollars in 2019. Subsequently, total debt decreased slightly in 2020 to 5,218,100 thousand US dollars and continued its downward trend to 5,025,300 thousand US dollars by the end of 2021.
Total capital demonstrates a generally stable to slightly increasing trend with some variability. Starting at 15,231,400 thousand US dollars in 2017, total capital increased marginally to 15,499,100 thousand US dollars in 2018, then decreased to 14,540,400 thousand US dollars in 2019. Thereafter, it rose again to 14,799,500 thousand US dollars in 2020 and reached its highest value in this period at 15,629,400 thousand US dollars by 2021.
The debt to capital ratio decreases over the five-year span, indicating a gradual reduction in the proportion of debt financing relative to total capital. The ratio dropped from 0.37 in 2017 to 0.33 in 2018, then returned to 0.37 in 2019 before declining again to 0.35 in 2020 and further down to 0.32 by the end of 2021. This suggests an overall move toward a stronger equity position or reduced leverage over time.
- Total Debt
- Fluctuated with a general downward trend from 2017 through 2021.
- Total Capital
- Exhibited a mostly stable trend with a slight dip in 2019 and growth towards 2021.
- Debt to Capital Ratio
- Showed a decreasing trend overall, indicative of declining leverage and enhanced financial stability.
Debt to Capital (including Operating Lease Liability)
Mosaic Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 302,800) | 100) | 41,600) | 11,500) | 6,100) | |
| Current maturities of long-term debt | 596,600) | 504,200) | 47,200) | 26,000) | 343,500) | |
| Structured accounts payable arrangements | 743,700) | 640,000) | 740,600) | 572,800) | 386,200) | |
| Long-term debt, less current maturities | 3,382,200) | 4,073,800) | 4,525,500) | 4,491,500) | 4,878,100) | |
| Total debt | 5,025,300) | 5,218,100) | 5,354,900) | 5,101,800) | 5,613,900) | |
| Short-term operating lease obligation | 59,700) | 64,000) | 67,100) | —) | —) | |
| Long-term operating lease obligation | 64,300) | 109,600) | 127,000) | —) | —) | |
| Total debt (including operating lease liability) | 5,149,300) | 5,391,700) | 5,549,000) | 5,101,800) | 5,613,900) | |
| Total Mosaic stockholders’ equity | 10,604,100) | 9,581,400) | 9,185,500) | 10,397,300) | 9,617,500) | |
| Total capital (including operating lease liability) | 15,753,400) | 14,973,100) | 14,734,500) | 15,499,100) | 15,231,400) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.33 | 0.36 | 0.38 | 0.33 | 0.37 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.26 | 0.27 | — | — | — | |
| Sherwin-Williams Co. | 0.83 | 0.74 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.36 | 0.35 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Materials | 0.38 | 0.38 | — | — | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 5,149,300 ÷ 15,753,400 = 0.33
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- Over the five-year period, total debt exhibited a fluctuating trend. It decreased from approximately 5,613,900 thousand US dollars in 2017 to 5,101,800 thousand in 2018, then increased to 5,549,000 thousand in 2019. Subsequently, total debt again declined, reaching 5,391,700 thousand in 2020 and further dropping to 5,149,300 thousand in 2021. This pattern indicates some variability in the company’s debt levels but an overall reduction from 2017 to 2021.
- Total Capital (Including Operating Lease Liability)
- Total capital showed modest fluctuations throughout the period. Beginning at 15,231,400 thousand US dollars in 2017, it slightly increased to 15,499,100 thousand in 2018 but then declined to 14,734,500 thousand in 2019. Thereafter, it gradually increased to 14,973,100 thousand in 2020 and reached a peak of 15,753,400 thousand in 2021. This reflects a generally stable capital base with an upward trend toward the end of the period.
- Debt to Capital Ratio (Including Operating Lease Liability)
- The debt to capital ratio demonstrated a moderate degree of fluctuation without a consistent directional trend. Starting at 0.37 in 2017, it decreased to 0.33 in 2018, rose to 0.38 in 2019, then declined to 0.36 in 2020 and further down to 0.33 in 2021. This ratio’s movement corresponds with the variations in total debt and total capital, suggesting that despite changes in absolute debt and capital values, the relative proportion of debt financing remained within a narrow band around one-third.
Debt to Assets
Mosaic Co., debt to assets calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 302,800) | 100) | 41,600) | 11,500) | 6,100) | |
| Current maturities of long-term debt | 596,600) | 504,200) | 47,200) | 26,000) | 343,500) | |
| Structured accounts payable arrangements | 743,700) | 640,000) | 740,600) | 572,800) | 386,200) | |
| Long-term debt, less current maturities | 3,382,200) | 4,073,800) | 4,525,500) | 4,491,500) | 4,878,100) | |
| Total debt | 5,025,300) | 5,218,100) | 5,354,900) | 5,101,800) | 5,613,900) | |
| Total assets | 22,036,400) | 19,789,800) | 19,298,500) | 20,119,200) | 18,633,400) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.23 | 0.26 | 0.28 | 0.25 | 0.30 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Linde plc | 0.18 | 0.18 | — | — | — | |
| Sherwin-Williams Co. | 0.47 | 0.41 | — | — | — | |
| Debt to Assets, Sector | ||||||
| Chemicals | 0.23 | 0.23 | — | — | — | |
| Debt to Assets, Industry | ||||||
| Materials | 0.22 | 0.23 | — | — | — | |
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
Debt to assets = Total debt ÷ Total assets
= 5,025,300 ÷ 22,036,400 = 0.23
2 Click competitor name to see calculations.
- Total Debt
- The total debt has shown a general decreasing trend over the five-year period. Starting at approximately $5.61 billion in 2017, it declined to around $5.02 billion by the end of 2021. There was a slight increase observed in 2019, but the overall trajectory is downward, indicating a reduction in financial leverage or repayment of debt obligations over time.
- Total Assets
- Total assets experienced fluctuations but exhibited growth overall. From about $18.63 billion in 2017, assets rose to approximately $22.04 billion in 2021. The peak in asset value appears in 2021, reflecting possible investments or asset accumulation during this period, despite a slight dip in 2019.
- Debt to Assets Ratio
- The debt to assets ratio has steadily decreased from 0.30 in 2017 to 0.23 by 2021. This decline suggests an improving financial structure where the proportion of debt relative to total assets is reducing, pointing to potentially lower financial risk and enhancing creditworthiness over these years.
Debt to Assets (including Operating Lease Liability)
Mosaic Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Short-term debt | 302,800) | 100) | 41,600) | 11,500) | 6,100) | |
| Current maturities of long-term debt | 596,600) | 504,200) | 47,200) | 26,000) | 343,500) | |
| Structured accounts payable arrangements | 743,700) | 640,000) | 740,600) | 572,800) | 386,200) | |
| Long-term debt, less current maturities | 3,382,200) | 4,073,800) | 4,525,500) | 4,491,500) | 4,878,100) | |
| Total debt | 5,025,300) | 5,218,100) | 5,354,900) | 5,101,800) | 5,613,900) | |
| Short-term operating lease obligation | 59,700) | 64,000) | 67,100) | —) | —) | |
| Long-term operating lease obligation | 64,300) | 109,600) | 127,000) | —) | —) | |
| Total debt (including operating lease liability) | 5,149,300) | 5,391,700) | 5,549,000) | 5,101,800) | 5,613,900) | |
| Total assets | 22,036,400) | 19,789,800) | 19,298,500) | 20,119,200) | 18,633,400) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.23 | 0.27 | 0.29 | 0.25 | 0.30 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Linde plc | 0.19 | 0.20 | — | — | — | |
| Sherwin-Williams Co. | 0.56 | 0.50 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Chemicals | 0.26 | 0.25 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Materials | 0.24 | 0.25 | — | — | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 5,149,300 ÷ 22,036,400 = 0.23
2 Click competitor name to see calculations.
- Total Debt (Including Operating Lease Liability)
- The total debt demonstrated a fluctuating trend over the five-year period. Initially, it decreased from approximately $5.61 billion in 2017 to $5.10 billion in 2018, before increasing again to $5.55 billion in 2019. It then experienced a slight decline in 2020 to about $5.39 billion, followed by another decrease to approximately $5.15 billion in 2021. Overall, there is a general downward movement in total debt from 2017 to 2021.
- Total Assets
- Total assets showed an overall increasing trend during the period under review. The value rose from about $18.63 billion in 2017 to $20.12 billion in 2018, then slightly dipped to $19.30 billion in 2019. After 2019, total assets increased consistently, reaching approximately $19.79 billion in 2020 and growing further to $22.04 billion in 2021. This indicates an expansion in asset base, particularly in the latter part of the period.
- Debt to Assets Ratio (Including Operating Lease Liability)
- The debt to assets ratio exhibited a gradual decline over the years. Starting at 0.30 in 2017, the ratio fell to 0.25 in 2018, then rose modestly to 0.29 in 2019. Subsequent years saw the ratio decrease again to 0.27 in 2020 and further to 0.23 in 2021. This trend suggests an improvement in leverage position, with debt comprising a smaller proportion of total assets by the end of the period.
Financial Leverage
Mosaic Co., financial leverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 22,036,400) | 19,789,800) | 19,298,500) | 20,119,200) | 18,633,400) | |
| Total Mosaic stockholders’ equity | 10,604,100) | 9,581,400) | 9,185,500) | 10,397,300) | 9,617,500) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.08 | 2.07 | 2.10 | 1.94 | 1.94 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Linde plc | 1.85 | 1.86 | — | — | — | |
| Sherwin-Williams Co. | 8.48 | 5.65 | — | — | — | |
| Financial Leverage, Sector | ||||||
| Chemicals | 2.20 | 2.13 | — | — | — | |
| Financial Leverage, Industry | ||||||
| Materials | 2.49 | 2.47 | — | — | — | |
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
Financial leverage = Total assets ÷ Total Mosaic stockholders’ equity
= 22,036,400 ÷ 10,604,100 = 2.08
2 Click competitor name to see calculations.
- Total assets
-
Total assets exhibited an overall upward trend from 2017 to 2021.
Beginning at approximately 18.63 billion USD in 2017, assets increased to over 22.03 billion USD by the end of 2021.
A slight decline was observed in 2019 compared to 2018, decreasing from 20.12 billion USD to 19.30 billion USD, but the asset base recovered and grew steadily thereafter.
- Total Mosaic stockholders’ equity
-
Stockholders' equity showed some variability throughout the period but followed a general upward movement over the five-year span.
Equity rose from roughly 9.62 billion USD in 2017 to over 10.60 billion USD in 2021, representing a moderate increase overall.
There was a notable dip in 2019, descending from nearly 10.40 billion USD in 2018 down to approximately 9.19 billion USD, before recovering slightly in subsequent years.
- Financial leverage
-
The financial leverage ratio remained relatively stable across the period, fluctuating narrowly between 1.94 and 2.10.
It started and ended close to 1.94 and 2.08, respectively, with a peak of 2.10 observed in 2019, indicating a mildly increased reliance on debt or liabilities relative to equity during that year.
This stability suggests consistent capital structure policies and risk appetite throughout the years analyzed.
Interest Coverage
Mosaic Co., interest coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net earnings (loss) attributable to Mosaic | 1,630,600) | 666,100) | (1,067,400) | 470,000) | (107,200) | |
| Add: Net income attributable to noncontrolling interest | 4,300) | (500) | (23,400) | (100) | 3,000) | |
| Add: Income tax expense | 597,700) | (578,500) | (224,700) | 77,100) | 494,900) | |
| Add: Interest expense | 194,300) | 214,100) | 216,000) | 215,800) | 171,300) | |
| Earnings before interest and tax (EBIT) | 2,426,900) | 301,200) | (1,099,500) | 762,800) | 562,000) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 12.49 | 1.41 | -5.09 | 3.53 | 3.28 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Linde plc | 45.60 | 21.41 | — | — | — | |
| Sherwin-Williams Co. | 7.72 | 8.40 | — | — | — | |
| Interest Coverage, Sector | ||||||
| Chemicals | 17.53 | 12.73 | — | — | — | |
| Interest Coverage, Industry | ||||||
| Materials | 15.36 | 8.03 | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 2,426,900 ÷ 194,300 = 12.49
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT values show considerable volatility over the five-year period. Starting at 562,000 in 2017, EBIT increased significantly to 762,800 in 2018, indicating improved operational profitability. However, in 2019, EBIT dropped sharply to -1,099,500, reflecting a substantial operating loss. After this downturn, EBIT recovered in 2020 to 301,200 and rose dramatically in 2021 to 2,426,900, surpassing all previous years and suggesting a strong operational performance in the latest year.
- Interest expense
- Interest expense remained relatively stable across the period, fluctuating slightly but staying within a narrow range from 171,300 to 216,000. It peaked in 2019 and 2020 at around 214,000-216,000 but slightly decreased to 194,300 in 2021. This stability indicates consistent debt servicing costs despite the fluctuations in EBIT.
- Interest coverage ratio
- The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, shows dramatic variations. The ratio improved slightly from 3.28 in 2017 to 3.53 in 2018, indicating growing capacity to meet interest obligations. However, in 2019, it turned negative at -5.09 due to the large operating loss. In 2020, it recovered to 1.41, indicating minimal but positive coverage. By 2021, the ratio increased significantly to 12.49, reflecting a greatly enhanced ability to cover interest costs and suggesting improved financial stability.
Fixed Charge Coverage
Mosaic Co., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net earnings (loss) attributable to Mosaic | 1,630,600) | 666,100) | (1,067,400) | 470,000) | (107,200) | |
| Add: Net income attributable to noncontrolling interest | 4,300) | (500) | (23,400) | (100) | 3,000) | |
| Add: Income tax expense | 597,700) | (578,500) | (224,700) | 77,100) | 494,900) | |
| Add: Interest expense | 194,300) | 214,100) | 216,000) | 215,800) | 171,300) | |
| Earnings before interest and tax (EBIT) | 2,426,900) | 301,200) | (1,099,500) | 762,800) | 562,000) | |
| Add: Rental expense | 211,800) | 226,900) | 249,100) | 270,300) | 114,000) | |
| Earnings before fixed charges and tax | 2,638,700) | 528,100) | (850,400) | 1,033,100) | 676,000) | |
| Interest expense | 194,300) | 214,100) | 216,000) | 215,800) | 171,300) | |
| Rental expense | 211,800) | 226,900) | 249,100) | 270,300) | 114,000) | |
| Fixed charges | 406,100) | 441,000) | 465,100) | 486,100) | 285,300) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 6.50 | 1.20 | -1.83 | 2.13 | 2.37 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Linde plc | 13.02 | 7.79 | — | — | — | |
| Sherwin-Williams Co. | 3.77 | 4.13 | — | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Chemicals | 6.99 | 5.55 | — | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Materials | 8.75 | 4.84 | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,638,700 ÷ 406,100 = 6.50
2 Click competitor name to see calculations.
- Earnings Before Fixed Charges and Tax
- The earnings exhibited significant volatility over the five-year period. Starting at 676,000 thousand US dollars in 2017, the figure increased substantially to 1,033,100 thousand US dollars in 2018. However, in 2019, there was a sharp downturn with a negative value of -850,400 thousand US dollars, indicating a substantial loss before fixed charges and tax. Recovery was seen in 2020 with earnings returning to a positive 528,100 thousand US dollars, and a strong upward trend continued into 2021, reaching 2,638,700 thousand US dollars, the highest level in the reported period.
- Fixed Charges
- Fixed charges, encompassing obligations such as interest and lease expenses, showed a moderate increase from 285,300 thousand US dollars in 2017 to 486,100 thousand US dollars in 2018. Following this peak, they slightly declined in 2019 and continued a gradual decrease through 2020 and 2021, ending at 406,100 thousand US dollars. This trend suggests a controlled management of fixed financial obligations despite fluctuations in earnings.
- Fixed Charge Coverage Ratio
- The fixed charge coverage ratio, which measures the ability to cover fixed charges by earnings before fixed charges and tax, reflected considerable instability aligned with the earnings trends. Beginning at a moderate 2.37 in 2017, the ratio declined to 2.13 in 2018 before turning negative (-1.83) in 2019, indicative of insufficient earnings to cover fixed charges during that year. A limited recovery to 1.2 was observed in 2020, followed by a significant improvement to 6.5 in 2021, highlighting a much stronger capacity to cover fixed charges by the end of the period.
- Summary
- The overall financial data reveals a cyclical pattern with a pronounced downturn in 2019, where earnings before fixed charges and tax became negative, adversely affecting coverage ratios. The subsequent years show a recovery, culminating in 2021 with record earnings and a substantially improved fixed charge coverage ratio. Fixed charges themselves were relatively stable with a slight declining trend after 2018, suggesting effective cost control amidst earnings volatility. These patterns indicate a return to financial strength and enhanced capacity to meet fixed financial obligations by the end of the analyzed period.