Compass Minerals International Inc (CMP)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	356,600	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
Payables	US$ in thousands	69,400	88,500	85,900	116,800	96,900	114,900	113,400	114,700	85,900	114,000	99,800	82,600	104,600	82,600	121,500	108,100	112,800	126,200	110,300	98,700
Payables turnover		5.14	4.13	3.07	1.57	1.81	1.53	1.58	1.61	1.87	3.59	3.95	4.82	3.95	2.11	1.74	1.94	1.86	1.63	1.30	1.38

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $356,600K ÷ $69,400K
= 5.14

The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the average accounts payable to the cost of goods sold. A higher payables turnover ratio generally indicates that the company is effectively managing its payables by paying suppliers quickly.

Looking at the payables turnover data for Compass Minerals International Inc over the past few quarters, we can observe fluctuations in the ratio. In the most recent quarter ending June 30, 2024, the payables turnover ratio was 5.14, indicating that the company was able to turn over its payables approximately 5.14 times during the period. This suggests a strong performance in managing its accounts payable compared to previous quarters.

In contrast, the payables turnover ratio was lower in the previous quarters, ranging from 1.30 to 4.13. A lower ratio could imply that the company took longer to pay its suppliers during those periods.

It is important to consider the industry norms and company-specific factors when evaluating the payables turnover ratio. A consistent upward trend or a ratio higher than industry averages may indicate efficient payables management, while a declining trend may raise questions about the company's liquidity or supplier relationships.

Overall, based on the data provided, Compass Minerals International Inc has shown variability in its payables turnover ratio over the past quarters, with a notable improvement in the most recent period. Additional analysis and comparison with industry benchmarks can provide further insight into the company's payables management efficiency.