Compass Minerals International Inc (CMP)

Days of inventory on hand (DOH)

		Jun 30, 2024	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
Inventory turnover		0.88	0.98	0.67	0.46	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
DOH	days	417.10	373.28	543.28	795.95	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

June 30, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.88
= 417.10

The days of inventory on hand (DOH) for Compass Minerals International Inc have displayed significant fluctuations over the historical period provided. The trend indicates that the company went through periods of managing inventory efficiently as well as facing challenges in inventory management.

In recent quarters, the DOH figures have shown a declining trend from the exceptionally high levels seen in the past. The decrease in DOH suggests that the company may have been able to optimize its inventory levels and improve inventory turnover efficiency. However, it is essential to note that inventory levels can be affected by various factors such as production levels, demand fluctuations, and supply chain disruptions.

The substantial variation in DOH across quarters indicates potential inconsistencies in inventory management practices, which could impact the company's working capital and liquidity position. A consistently high DOH may tie up capital in inventory and increase carrying costs, while a low DOH might signal potential stockouts and lost sales opportunities.

Further analysis of Compass Minerals International Inc's operational and supply chain dynamics, along with industry benchmarks, would provide a more comprehensive understanding of the factors driving the fluctuations in the days of inventory on hand and offer insights into the company's overall inventory management efficiency.