Compass Minerals International Inc (CMP)

Working capital turnover

		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	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	1,659,100
Total current assets	US$ in thousands	598,100	627,800	593,800	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	619,200
Total current liabilities	US$ in thousands	200,900	204,300	275,800	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	286,000
Working capital turnover		2.76	2.70	3.63	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	4.98

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,095,400K ÷ ($598,100K – $200,900K)
= 2.76

The working capital turnover ratio for Compass Minerals International Inc fluctuated over the past several quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

From the data provided, we observe that the working capital turnover ratio ranged from a low of 2.60 to a high of 5.67, with an average of approximately 3.68 over the period. A higher turnover ratio indicates that the company is effectively using its current assets to support its operations and generate sales. Conversely, a lower ratio may suggest inefficiencies in managing working capital.

The ratio peaked at 5.67 in the second quarter of 2021, indicating that the company was able to generate significant sales revenue relative to its working capital at that time. However, the ratio decreased in subsequent quarters before showing some fluctuations in more recent periods.

Overall, it is essential for Compass Minerals International Inc to closely monitor its working capital turnover ratio to ensure efficient utilization of resources and sustainable growth in sales. Further analysis of the company's working capital management practices and operational efficiency may help in optimizing this important financial metric.