Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Mosaic Co., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Mosaic Co. inventory turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Mosaic Co. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Mosaic Co. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Mosaic Co. working capital turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Mosaic Co. number of days of inventory outstanding improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Mosaic Co. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Mosaic Co. operating cycle improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Mosaic Co. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Mosaic Co. cash conversion cycle improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Inventory Turnover
Mosaic Co., inventory turnover 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) | ||||||
| Cost of goods sold | 9,157,100) | 7,616,800) | 8,009,000) | 8,088,900) | 6,566,600) | |
| Inventories | 2,741,400) | 1,739,200) | 2,076,400) | 2,270,200) | 1,547,200) | |
| Short-term Activity Ratio | ||||||
| Inventory turnover1 | 3.34 | 4.38 | 3.86 | 3.56 | 4.24 | |
| Benchmarks | ||||||
| Inventory Turnover, Competitors2 | ||||||
| Linde plc | 10.12 | 8.90 | 9.81 | — | — | |
| Inventory Turnover, Industry | ||||||
| Materials | 5.07 | 4.81 | 5.16 | — | — | |
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
Inventory turnover = Cost of goods sold ÷ Inventories
= 9,157,100 ÷ 2,741,400 = 3.34
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Mosaic Co. inventory turnover ratio improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Receivables Turnover
Mosaic Co., receivables turnover 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 sales | 12,357,400) | 8,681,700) | 8,906,300) | 9,587,300) | 7,409,400) | |
| Receivables, net | 1,531,900) | 881,100) | 803,900) | 838,500) | 642,600) | |
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | 8.07 | 9.85 | 11.08 | 11.43 | 11.53 | |
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Linde plc | 6.84 | 6.54 | 6.53 | — | — | |
| Receivables Turnover, Industry | ||||||
| Materials | 9.46 | 8.19 | 8.42 | — | — | |
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
Receivables turnover = Net sales ÷ Receivables, net
= 12,357,400 ÷ 1,531,900 = 8.07
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Mosaic Co. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021. |
Payables Turnover
Mosaic Co., payables turnover 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) | ||||||
| Cost of goods sold | 9,157,100) | 7,616,800) | 8,009,000) | 8,088,900) | 6,566,600) | |
| Accounts payable | 1,260,700) | 769,100) | 680,400) | 780,900) | 540,900) | |
| Short-term Activity Ratio | ||||||
| Payables turnover1 | 7.26 | 9.90 | 11.77 | 10.36 | 12.14 | |
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Linde plc | 5.01 | 4.97 | 5.10 | — | — | |
| Payables Turnover, Industry | ||||||
| Materials | 5.70 | 5.92 | 6.05 | — | — | |
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
Payables turnover = Cost of goods sold ÷ Accounts payable
= 9,157,100 ÷ 1,260,700 = 7.26
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Mosaic Co. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021. |
Working Capital Turnover
Mosaic Co., working capital turnover 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) | ||||||
| Current assets | 5,325,300) | 3,521,200) | 3,718,200) | 4,237,000) | 4,616,500) | |
| Less: Current liabilities | 4,787,400) | 3,146,500) | 2,591,700) | 2,483,700) | 2,031,100) | |
| Working capital | 537,900) | 374,700) | 1,126,500) | 1,753,300) | 2,585,400) | |
| Net sales | 12,357,400) | 8,681,700) | 8,906,300) | 9,587,300) | 7,409,400) | |
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | 22.97 | 23.17 | 7.91 | 5.47 | 2.87 | |
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Linde plc | — | — | — | — | — | |
| Working Capital Turnover, Industry | ||||||
| Materials | 9.83 | 13.50 | 14.71 | — | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 12,357,400 ÷ 537,900 = 22.97
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Mosaic Co. working capital turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Average Inventory Processing Period
Mosaic Co., average inventory processing period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Inventory turnover | 3.34 | 4.38 | 3.86 | 3.56 | 4.24 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average inventory processing period1 | 109 | 83 | 95 | 102 | 86 | |
| Benchmarks (no. days) | ||||||
| Average Inventory Processing Period, Competitors2 | ||||||
| Linde plc | 36 | 41 | 37 | — | — | |
| Average Inventory Processing Period, Industry | ||||||
| Materials | 72 | 76 | 71 | — | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 3.34 = 109
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Mosaic Co. number of days of inventory outstanding improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Average Receivable Collection Period
Mosaic Co., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | 8.07 | 9.85 | 11.08 | 11.43 | 11.53 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | 45 | 37 | 33 | 32 | 32 | |
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Linde plc | 53 | 56 | 56 | — | — | |
| Average Receivable Collection Period, Industry | ||||||
| Materials | 39 | 45 | 43 | — | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.07 = 45
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Mosaic Co. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021. |
Operating Cycle
Mosaic Co., operating cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 109 | 83 | 95 | 102 | 86 | |
| Average receivable collection period | 45 | 37 | 33 | 32 | 32 | |
| Short-term Activity Ratio | ||||||
| Operating cycle1 | 154 | 120 | 128 | 134 | 118 | |
| Benchmarks | ||||||
| Operating Cycle, Competitors2 | ||||||
| Linde plc | 89 | 97 | 93 | — | — | |
| Operating Cycle, Industry | ||||||
| Materials | 111 | 121 | 114 | — | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 109 + 45 = 154
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Mosaic Co. operating cycle improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |
Average Payables Payment Period
Mosaic Co., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | 7.26 | 9.90 | 11.77 | 10.36 | 12.14 | |
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | 50 | 37 | 31 | 35 | 30 | |
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Linde plc | 73 | 73 | 72 | — | — | |
| Average Payables Payment Period, Industry | ||||||
| Materials | 64 | 62 | 60 | — | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.26 = 50
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Mosaic Co. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021. |
Cash Conversion Cycle
Mosaic Co., cash conversion cycle calculation, comparison to benchmarks
No. days
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Average inventory processing period | 109 | 83 | 95 | 102 | 86 | |
| Average receivable collection period | 45 | 37 | 33 | 32 | 32 | |
| Average payables payment period | 50 | 37 | 31 | 35 | 30 | |
| Short-term Activity Ratio | ||||||
| Cash conversion cycle1 | 104 | 83 | 97 | 99 | 88 | |
| Benchmarks | ||||||
| Cash Conversion Cycle, Competitors2 | ||||||
| Linde plc | 16 | 24 | 21 | — | — | |
| Cash Conversion Cycle, Industry | ||||||
| Materials | 47 | 59 | 54 | — | — | |
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 conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 109 + 45 – 50 = 104
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Mosaic Co. cash conversion cycle improved from 2019 to 2020 but then deteriorated significantly from 2020 to 2021. |