Compass Minerals International Inc (CMP)

Payables turnover

		Sep 30, 2023	Sep 30, 2022	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Cost of revenue	US$ in thousands	183,200	199,800	138,000	206,500	198,500
Payables	US$ in thousands	116,800	114,700	82,600	126,200	111,300
Payables turnover		1.57	1.74	1.67	1.64	1.78

September 30, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $183,200K ÷ $116,800K
= 1.57

The payables turnover ratio for Compass Minerals International Inc has exhibited a declining trend in recent years. The ratio decreased from 10.78 in 2018 to 8.31 in September 30, 2023. This indicates that the company's efficiency in managing its accounts payable has diminished over the years. A lower payables turnover ratio may suggest that the company is taking a longer time to pay its suppliers, which could impact its relationships with vendors. It could also indicate potential liquidity issues or inefficiencies in the company's supply chain management. Further analysis of the company's cash flow and working capital management is warranted to fully understand the implications of this trend.