POT  Potash Corporation Of Saskatch...

Exchange

NYSE

Sector

Basic Industries

Industry

Agricultural Chemicals

Market Cap.

36.708B

Poor Cash Return on Invested Capital over the past 5 years

POT has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

POT has only created $9.63 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20072008200920102011
Free Cash Flow 1.08B 1.81B -839.90M 1.02B 1.24B
divided by
Invested Capital 8.00B 7.35B 10.98B 12.02B 13.63B
Cash ROIC 13.53% 24.69% -7.65% 8.49% 9.07%

Varying Return on Equity over the past 5 years

POT has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

POT has generated $35.10 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20072008200920102011
Net Income 1.10B 3.50B 987.80M 1.81B 3.08B
divided by
Stockholders' Equity 6.02B 4.59B 6.50B 6.80B 7.85B
Return on Equity 18.34% 76.17% 15.20% 26.55% 39.26%

Excellent Business Performance over the past 10 years

POT has been able to maintain profitability in good times and bad. This could mean POT has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

POT has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2002200320042005200620072008200920102011
Free Cash Flow 104.20M 230.80M 429.10M 482.40M 188.20M 1.08B 1.81B -839.90M 1.02B 1.24B