Compass Minerals International Inc (CMP)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 7.66 | 6.78 | 8.92 | 12.34 | 7.41 | 6.02 | 7.18 | 10.50 | 6.91 | 6.22 | 13.02 | — | 6.56 | 7.23 | 8.70 | 6.50 | 4.21 | 6.60 | 7.89 | 6.88 |
| 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 |
| Working capital turnover | 2.76 | 2.70 | 3.63 | 4.13 | 2.79 | 2.61 | 3.65 | 3.93 | 4.58 | 3.20 | 2.60 | 5.67 | 2.64 | 3.66 | 4.08 | 3.98 | 2.97 | 3.42 | 4.04 | 4.98 |
Based on the activity ratios of Compass Minerals International Inc over the past several quarters, we can observe the following trends:
1. Inventory turnover: The inventory turnover ratio has fluctuated over the periods, with the highest being 1.94 in March 2022 and the lowest at 0.47 in September 2023. A low inventory turnover indicates that the company may be holding onto excess inventory or facing challenges in selling its products efficiently.
2. Receivables turnover: The receivables turnover ratio has also varied, peaking at 13.02 in June 2021. A high receivables turnover ratio suggests that the company is efficient in collecting payments from its customers.
3. Payables turnover: The payables turnover ratio fluctuated as well, with the highest value of 4.82 in June 2021 and the lowest at 1.30 in June 2019. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly.
4. Working capital turnover: The working capital turnover ratio has shown fluctuations as well, with the highest value of 5.67 in March 2021 and the lowest at 2.61 in December 2022. A higher working capital turnover ratio signifies that the company is effectively utilizing its working capital to generate revenues.
Overall, analyzing these activity ratios provides insights into how efficiently Compass Minerals International Inc is managing its inventories, receivables, payables, and working capital to support its operations and financial performance.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 366.90 | 543.28 | 781.40 | 706.53 | 544.90 | 612.74 | 600.25 | 610.38 | 188.08 | 284.55 | 264.90 | 204.57 | 625.50 | 665.60 | 566.40 | 441.82 | 551.39 | 858.03 | 830.52 | 244.09 |
| Days of sales outstanding (DSO) | days | 47.65 | 53.84 | 40.92 | 29.58 | 49.25 | 60.59 | 50.85 | 34.76 | 52.78 | 58.69 | 28.03 | — | 55.67 | 50.46 | 41.95 | 56.19 | 86.80 | 55.29 | 46.24 | 53.09 |
| Number of days of payables | days | 88.31 | 118.90 | 232.71 | 201.30 | 239.24 | 230.85 | 226.18 | 194.98 | 101.76 | 92.29 | 75.71 | 92.35 | 172.97 | 209.78 | 188.34 | 196.06 | 223.39 | 280.75 | 265.28 | 97.70 |
The activity ratios of Compass Minerals International Inc provide insight into the company's efficiency in managing its inventory, collecting receivables, and paying its suppliers.
1. Days of Inventory on Hand (DOH): From March 31, 2019, to March 31, 2024, the DOH ratio fluctuates significantly, indicating varying levels of efficiency in managing inventory. The ratio ranged from a low of 188.08 days to a high of 858.03 days, with the latest value at 366.90 days. A decreasing trend in this ratio indicates improved efficiency in inventory management.
2. Days of Sales Outstanding (DSO): The DSO ratio also fluctuates over the same period, ranging from 28.03 days to 86.80 days. A decreasing trend in DSO indicates the company is collecting receivables faster. However, the absence of data for some periods makes it challenging to assess the overall trend accurately.
3. Number of Days of Payables: The number of days of payables shows variations from December 31, 2019, to March 31, 2024, ranging from 75.71 days to 280.75 days. A higher number of days of payables may indicate the company is taking longer to pay its suppliers, which could be intentional for managing cash flow.
In conclusion, fluctuations in activity ratios like DOH, DSO, and number of days of payables suggest that Compass Minerals International Inc has experienced changes in its efficiency in managing inventory, collecting receivables, and paying suppliers over the analyzed periods. These ratios need to be carefully monitored to ensure optimal working capital management and operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.38 | 1.42 | 1.37 | 1.45 | 1.51 | 1.57 | 1.55 | 1.42 | 1.66 | 1.53 | 1.42 | 1.46 | 1.43 | 1.50 | 1.55 | 1.53 | 1.40 | 1.39 | 1.34 | 1.58 |
| Total asset turnover | 0.66 | 0.63 | 0.64 | 0.68 | 0.66 | 0.69 | 0.73 | 0.72 | 0.83 | 0.73 | 0.60 | 1.85 | 0.54 | 0.65 | 0.70 | 0.69 | 0.59 | 0.61 | 0.61 | 0.72 |
The fixed asset turnover ratio for Compass Minerals International Inc has shown some fluctuations over the past quarters, ranging from 1.34 to 1.66. This ratio indicates that the company generates between $1.34 and $1.66 in revenue for every dollar invested in fixed assets. The fluctuations suggest potential changes in the efficiency of the company's fixed asset utilization.
In contrast, the total asset turnover ratio has also varied, ranging from 0.54 to 1.85. This ratio reflects how efficiently the company generates revenue from all of its assets. The significant fluctuation in this ratio indicates varying levels of asset utilization efficiency over the quarters analyzed.
Overall, the long-term activity ratios suggest that Compass Minerals International Inc might be experiencing challenges in consistently optimizing its asset turnover efficiency, both in terms of fixed assets and total assets. Further analysis into the company's operational performance and investment strategies may be needed to identify the underlying reasons for these fluctuations.