Compass Minerals International Inc (CMP)

Payables 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
Payables	US$ in thousands	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	90,500
Payables turnover		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	3.74

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $365,800K ÷ $88,500K
= 4.13

The payables turnover ratio for Compass Minerals International Inc has shown fluctuations over the past few quarters. The ratio was 4.13 as of March 31, 2024, indicating that the company paid its accounts payable approximately 4.13 times during that period. This represents an improvement from the previous quarter where the ratio was 3.07.

The trend in payables turnover suggests that the company is managing its accounts payable more efficiently in recent quarters compared to the earlier periods. The highest payables turnover ratio was observed in the second quarter of 2021 at 4.82, indicating a strong ability to convert accounts payable into cash.

Overall, the increasing trend in payables turnover ratios reflects a more efficient management of trade payables by Compass Minerals International Inc, which could have positive implications for its working capital management and cash flow generation.