Compass Minerals International Inc (CMP)

Cash ratio

Sep 30, 2023 Sep 30, 2022 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Cash and cash equivalents US$ in thousands 38,700 46,100 10,600 18,000 27,000
Short-term investments US$ in thousands 20,000 16,700
Total current liabilities US$ in thousands 275,800 233,100 296,700 295,900 283,300
Cash ratio 0.14 0.20 0.10 0.12 0.10

September 30, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($38,700K + $—K) ÷ $275,800K
= 0.14

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.

Looking at Compass Minerals International Inc's cash ratio over the past five years, we can see fluctuations in the company's ability to meet its short-term obligations with cash on hand. The ratio has decreased from 0.49 in 2018 to 0.26 in September 30, 2023.

The declining trend in the cash ratio indicates that the company may be experiencing challenges in maintaining sufficient liquid assets to cover its short-term liabilities. It suggests a potential decrease in the company's ability to meet its financial obligations using its existing cash resources.

Further investigation into the company's cash management practices and the reasons behind the declining cash ratio would provide valuable insights into its financial health and liquidity position.


Peer comparison

Sep 30, 2023