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	281,500	1,200,100	946,700	1,408,800	1,436,900
Total current assets	US$ in thousands	600,900	562,000	756,300	780,000	721,200
Total current liabilities	US$ in thousands	274,600	233,100	296,700	295,900	283,300
Working capital turnover		0.86	3.65	2.06	2.91	3.28

September 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $281,500K ÷ ($600,900K – $274,600K)
= 0.86

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.