Compass Minerals International Inc (CMP)

Working capital 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
Total current assets	US$ in thousands	547,000	598,100	627,800	600,900	532,100	700,800	684,700	562,000	479,300	522,200	585,200	883,300	611,900	756,300	685,400	620,400	626,200	780,000	695,400	625,200
Total current liabilities	US$ in thousands	188,400	200,900	204,200	274,600	246,000	276,000	218,700	233,100	189,400	224,200	197,400	427,700	393,900	296,700	301,800	261,000	259,300	295,900	277,900	276,400
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

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,092,700K ÷ ($547,000K – $188,400K)
= 3.05

The working capital turnover ratio for Compass Minerals International Inc has shown fluctuations over the periods analyzed. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue. A higher ratio suggests better efficiency in converting working capital into sales.

From the data provided, we can observe that the working capital turnover ratio varied between 2.61 and 5.67 during the periods analyzed. The highest ratio of 5.67 was recorded in March 2021, indicating a significant level of efficiency in utilizing working capital to generate revenue.

On the other hand, the lowest ratio of 2.61 was observed in March 2023, indicating a relatively lower level of efficiency in utilizing working capital during that period.

Overall, the working capital turnover ratio for Compass Minerals International Inc has shown some volatility, with periods of both higher efficiency and lower efficiency in utilizing working capital to drive sales. It would be essential for the company to further analyze the factors contributing to these fluctuations and work towards maintaining a more consistent and efficient use of working capital.