Compass Minerals International Inc (CMP)

Days of inventory on hand (DOH)

		Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover		0.99	0.67	0.47	0.52	0.67	0.60	0.61	0.60	1.94	1.28	1.38	1.78	0.58	0.55	0.64	0.83	0.66	0.43	0.44	1.50
DOH	days	366.90	543.28	781.40	706.53	544.90	612.74	600.25	610.38	188.08	284.55	264.90	204.57	625.50	665.60	566.40	441.82	551.39	858.03	830.52	244.09

March 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.99
= 366.90

The days of inventory on hand (DOH) for Compass Minerals International Inc has shown significant fluctuations over the periods analyzed. The trend indicates varying levels of efficiency in managing inventory levels.

In the most recent period ending March 31, 2024, the company held inventory for an average of 366.90 days, which is a considerable improvement compared to the previous quarter where it was 543.28 days. This implies a reduction in the time taken to convert inventory into sales, suggesting increased inventory turnover efficiency.

Looking back over the past several quarters, the DOH figures have been volatile, with some quarters significantly higher than others. For instance, the December 31, 2019 period had a high DOH of 858.03 days, indicating that inventory was held for an extensive period before being sold.

The average DOH over the periods indicates that Compass Minerals International Inc has been working towards optimizing its inventory management practices. The company has experienced fluctuations in inventory turnover efficiency, suggesting potential challenges in forecasting demand and managing production levels effectively.

It is recommended that the company continue to monitor and analyze its inventory levels closely to ensure optimal balance between maintaining sufficient stock to meet demand and minimizing excess holding costs. Improving inventory turnover can positively impact working capital management and overall financial performance.