Compass Minerals International Inc (CMP)
Working capital turnover
Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 1,155,100 | 1,200,100 | 946,700 | 1,408,800 | 1,436,900 |
Total current assets | US$ in thousands | 593,800 | 562,000 | 756,300 | 780,000 | 721,200 |
Total current liabilities | US$ in thousands | 275,800 | 233,100 | 296,700 | 295,900 | 283,300 |
Working capital turnover | 3.63 | 3.65 | 2.06 | 2.91 | 3.28 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,155,100K ÷ ($593,800K – $275,800K)
= 3.63
The working capital turnover ratio for Compass Minerals International Inc has been relatively stable over the past five years, ranging from 2.19 to 3.79. This ratio measures the efficiency of the company in utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support sales, while a lower ratio may suggest inefficiency in capital utilization.
The slight increase in the working capital turnover ratio from 3.05 in 2019 to 3.79 in 2023 indicates improved efficiency in utilizing working capital to generate sales. This may be attributed to better management of current assets and liabilities, ensuring that the company's resources are effectively employed to support its revenue generation activities.
Overall, the consistent working capital turnover ratio suggests that Compass Minerals International Inc has been able to maintain a relatively efficient use of its working capital to drive sales over the period under consideration. However, it would be beneficial to consider industry benchmarks and qualitative factors to gain a deeper understanding of the company's performance in this aspect.
Peer comparison
Sep 30, 2023