Compass Minerals International Inc (CMP)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	365,800	263,700	183,200	175,700	175,300	179,300	185,100	160,800	408,900	394,700	398,200	413,400	174,300	211,400	209,500	210,000	206,200	143,400	135,800	338,100
Inventory	US$ in thousands	367,700	392,500	392,200	340,100	261,700	301,000	304,400	268,900	210,700	307,700	289,000	231,700	298,700	385,500	325,100	254,200	311,500	337,100	309,000	226,100
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

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $365,800K ÷ $367,700K
= 0.99

The inventory turnover ratio for Compass Minerals International Inc has fluctuated over the past few quarters. The ratio indicates the number of times a company sells and replaces its inventory during a particular period.

In the most recent quarter, ending March 31, 2024, the inventory turnover ratio stood at 0.99. This indicates that the company's inventory was turned over approximately once during the quarter. This is an improvement compared to the previous quarter, where the ratio was 0.67, suggesting a more efficient management of inventory.

Looking back over the past few quarters, there have been fluctuations in the inventory turnover ratio, ranging from a low of 0.43 to a high of 1.94. A lower ratio implies slower inventory turnover, which could indicate overstocking or potential obsolescence. Conversely, a higher ratio suggests efficient inventory management and potentially faster sales cycles.

It is important for Compass Minerals International Inc to continue monitoring and managing its inventory levels effectively to ensure optimal utilization of resources and maintain healthy liquidity. Additionally, analyzing trends in the inventory turnover ratio can provide insights into the company's operational efficiency and demand for its products.