Compass Minerals International Inc (CMP)

Receivables 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
Revenue (ttm)	US$ in thousands	1,092,700	1,095,400	1,143,100	1,155,100	1,182,300	1,183,600	1,218,100	1,200,100	1,140,300	1,364,300	1,241,900	1,185,100	1,235,700	1,213,500	1,404,600	1,467,000	1,461,500	1,439,800	1,426,000	1,409,000
Receivables	US$ in thousands	92,300	143,000	168,600	129,300	95,800	159,700	202,200	167,200	108,600	197,300	199,700	91,000	-4,300	185,100	194,200	168,600	225,000	342,400	216,000	178,500
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

June 30, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,092,700K ÷ $92,300K
= 11.84

The receivables turnover ratio for Compass Minerals International Inc has fluctuated over the past few years, ranging from a low of 4.21 to a high of 13.02. This ratio measures how efficiently the company is collecting cash from its customers in relation to its accounts receivable balance.

A higher receivables turnover ratio suggests that the company is collecting cash from its customers more quickly, which indicates efficient management of accounts receivable. On the other hand, a lower ratio may indicate that the company is taking longer to collect cash from its customers, potentially signaling issues with credit policies or customer payment delays.

Compass Minerals' receivables turnover ratio has shown some volatility over the periods analyzed, with some quarters performing better than others. It is essential for the company to consistently monitor and manage its accounts receivable turnover to ensure timely cash collection and maintain healthy cash flow.