Earnings Analysis for MOS (Last 3 Years)
Revenue Analysis
Total and Operating Revenue: The revenues of MOS increased steadily over the observed years, peaking at $3.54 billion in Q3 2023 before slightly decreasing. Operating Revenue paralleled the Total Revenue, indicating the primary revenue streams are from operating activities.
Gross Profit: The Gross Profit has shown a fluctuating yet upward trend from $399.2 million in Q1 2024 to a high of $670.4 million in Q1 2023. This suggests improved efficiency or increased product prices.
Cost Management
Cost of Revenue: MOS’s Cost of Revenue has been quite volatile, increasing from $2.29 billion in Q1 2024 to $3.14 billion in Q3 2023, then slightly reducing. This volatility could be related to raw material prices or production costs.
Operating Expense: Total Operating Expenses ranged between $226.3 million in Q1 2024 and $281 million in Q3 2023. A careful management of these expenses could improve profitability.
Total Expenses: Total Expenses reflect a similar trend to operating costs and might suggest scaling operations or varying operational efficiency.
Profitability Analysis
EBITDA: EBITDA has been inconsistent but showed a significant peak of $816.2 million in Q1 2023. This indicates variable earnings before interest, taxes, depreciation, and amortization.
Operating Income: Operating Income followed a generally increasing trend, indicating effective operations management over the period, despite fluctuations.
Pretax Income: Fluctuated similarly, with peaks and troughs aligned with operational income changes. This points towards varying profitability before considering taxes.
Net Income: Demonstrated significant fluctuations, with a low in Q3 2023 at -$4.2 million and a high in Q1 2023 at $434.8 million, which could indicate varying fiscal controls or exceptional items impacting net profitability.
Cash Flow Indicators
Reconciled Depreciation: The Reconciled Depreciation increased over the observed years, which might suggest an expansion in capital assets needing higher depreciation expenses.
Interest Expense: The Interest Expense has varied, reflecting changes in the company’s debt structure and possibly fluctuating interest rates.
Taxation
Tax Rate: The effective tax rate varied, with a notable decrease over time. This might reflect changing tax laws or more effective tax planning strategies by MOS.
Tax Provision: Fluctuated significantly, aligned closely with pretax income and operational profitability.
Tax Effect of Unusual Items: This metric varied due to non-recurring items that affected the company’s tax calculations.
Shareholder Metrics
Diluted and Basic EPS: Both metrics experienced highs and lows mirroring the net income, useful indicators of profitability per share for investors.
Average Shares: There was slight variability in the count of average shares outstanding, which could influence per-share calculations.
Net Income Available to Common Stockholders: This key metric shows the actual earnings available to shareholders, aligning closely with reported net income.
Conclusion
Overall, MOS has exhibited fluctuating financial performance over the observed period with signs of good revenue growth and operation expansions indicated by increases in depreciation and gross profit. Recommendations for MOS would include tighter cost control measures, continued careful management of operating expenses, and exploring strategies to stabilize net income.