Compass Minerals International Inc (CMP)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	0.88	0.98	0.67	0.46	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
Receivables turnover	11.84	7.66	6.78	8.93	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
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
Working capital turnover	3.05	2.76	2.70	3.54	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

Inventory turnover measures how efficiently Compass Minerals is managing its inventory. The trend in inventory turnover over the periods shows fluctuations but generally remains low, indicating that the company is not selling through its inventory quickly. This could lead to potential issues such as carrying excess inventory or slower sales.

Receivables turnover reflects the effectiveness of Compass Minerals in collecting its accounts receivable. The company has experienced fluctuations in receivables turnover, but overall, the trend shows variability. The higher turnover ratios suggest that the company is collecting its receivables more frequently, which is a positive sign for liquidity.

Payables turnover evaluates how efficiently Compass Minerals is managing its payables. The trend in payables turnover ratios reveals fluctuating patterns over time. A higher turnover ratio indicates that the company is paying its suppliers more frequently, potentially benefiting from early payment discounts.

Working capital turnover measures how effectively Compass Minerals is utilizing its working capital to generate sales. The trend in working capital turnover ratios shows variability but generally remains at a moderate level. Higher turnover ratios suggest that the company is efficiently using its working capital to generate revenue.

Overall, Compass Minerals should focus on improving its inventory turnover to efficiently manage its inventory levels and potentially increase sales. Additionally, maintaining a stable and efficient turnover of receivables and payables will help enhance liquidity and operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	417.10	373.28	543.28	795.95	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
Days of sales outstanding (DSO)	days	30.83	47.65	53.84	40.86	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
Number of days of payables	days	71.03	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

The days of inventory on hand (DOH) for Compass Minerals International Inc have shown significant fluctuations over the periods analyzed. Generally, a higher DOH indicates that the company is holding excessive inventory, which may tie up working capital and lead to storage costs. Conversely, a lower DOH suggests efficient inventory management.

The days of sales outstanding (DSO) have also varied, indicating how long it takes the company to collect its accounts receivable. A lower DSO is preferable as it signifies that the company is efficient in collecting payments from customers and managing its cash flow effectively.

In terms of the number of days of payables, Compass Minerals International Inc has displayed fluctuations. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, potentially indicating strained supplier relationships or cash flow issues. On the other hand, a lower number of days of payables may indicate stronger financial health.

Overall, it is essential for Compass Minerals International Inc to closely monitor and manage these activity ratios to ensure optimal inventory, accounts receivable, and accounts payable management for improved operational efficiency and financial performance.

Long-term

	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
Fixed asset turnover	1.39	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
Total asset turnover	0.68	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

The fixed asset turnover ratio for Compass Minerals International Inc has been relatively stable over the periods presented, ranging from 1.34 to 1.66. This indicates the company's ability to generate sales from its fixed assets, such as property, plant, and equipment, with an average turnover ratio of approximately 1.47 over the periods analyzed.

On the other hand, the total asset turnover ratio has shown more fluctuation, ranging from 0.54 to 1.85. This ratio measures the company's efficiency in generating sales from all its assets, including fixed and current assets. The average total asset turnover ratio over the periods analyzed stands at around 0.71.

Overall, the company's fixed asset turnover suggests a consistent utilization of its fixed assets to generate sales, while the total asset turnover reflects varying efficiency in utilizing all assets to generate revenue. It is essential for Compass Minerals International Inc to monitor and improve these ratios to ensure optimal asset utilization and operational efficiency.