Compass Minerals International Inc (CMP)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	12,800	38,300	38,300	38,700	58,000	249,700	146,100	46,100	47,200	44,900	20,300	26,300	42,800	10,600	34,100	67,200	109,800	18,000	23,900	20,400
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	20,000	24,000	—	—	16,700	—	—
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
Cash ratio		0.07	0.19	0.19	0.14	0.24	0.90	0.67	0.20	0.25	0.20	0.10	0.06	0.11	0.10	0.19	0.26	0.42	0.12	0.09	0.07

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($12,800K + $—K) ÷ $188,400K
= 0.07

The cash ratio of Compass Minerals International Inc has shown fluctuating trends over the past few quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates that a company has a stronger ability to cover its short-term obligations.

Looking at the data provided:
- The cash ratio has ranged from a low of 0.06 to a high of 0.90 over the past several quarters.
- The ratio was relatively low in the fourth quarter of 2021 at 0.10, increased significantly to 0.67 in the first quarter of 2022, and then decreased to 0.19 in the second quarter of 2022.
- The cash ratio dropped to 0.07 in the fourth quarter of 2022 and gradually increased to 0.24 in the second quarter of 2023 before reaching 0.90 in the first quarter of 2023, indicating a significant improvement in the company's short-term liquidity position.
- However, the ratio declined in subsequent quarters, reaching 0.07 in the first quarter of 2024.

Overall, the recent downward trend in the cash ratio suggests that there may be fluctuations in Compass Minerals International Inc's ability to cover its short-term obligations with its available cash and cash equivalents. It would be important to closely monitor the company's cash management strategies and liquidity position to ensure its financial health and stability.