Compass Minerals International Inc (CMP)

The number of days of payables refers to the average number of days it takes a company to pay its suppliers or trade payables. It is calculated as (Accounts Payable / Cost of Goods Sold) * 365.

For Compass Minerals International Inc, the number of days of payables has shown a fluctuating trend over the past five years. In 2018, it stood at 33.86 days, indicating that, on average, the company took approximately 33.86 days to settle its trade payables. This number increased to 39.93 days in 2019, reflecting a slight elongation in the payment period.

By the end of 2020, the number of days of payables rose to 38.40 days, and then further increased to 39.97 days by September 30, 2022. This may suggest that Compass Minerals International Inc was taking longer to pay its suppliers, potentially indicating a strain on its working capital management or changes in negotiation terms with vendors.

However, the most recent data as of September 30, 2023, shows a notable increase to 43.91 days, signifying a further extension in the payment cycle. This could raise concerns about the company's liquidity position and its ability to effectively manage its trade payables.

Analyzing the trend, an increasing number of days of payables could indicate potential cash flow issues or a deliberate strategy to lengthen payment periods to manage cash more effectively. It is important to monitor this metric in conjunction with other financial ratios and operational performance indicators to gain a comprehensive understanding of Compass Minerals International Inc's financial health and working capital management.

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Sep 30, 2023