Compass Minerals International Inc (CMP)

Current ratio

		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
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
Current ratio		2.98	3.07	2.15	2.16	2.54	3.13	2.41	2.53	2.33	2.96	2.07	1.55	2.55	2.27	2.38	2.41	2.64	2.50	2.26	2.17

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $598,100K ÷ $200,900K
= 2.98

The current ratio of Compass Minerals International Inc has exhibited some fluctuation over the past several quarters. The ratio peaked at 3.13 in December 2022 and has ranged from 1.55 to 3.13 over the past year. It currently stands at a healthy 2.98 as of March 31, 2024.

A current ratio above 1 indicates that the company has more than enough current assets to cover its current liabilities, providing a margin of safety. A higher current ratio suggests better short-term liquidity and financial health. Compass Minerals' current ratio trend indicates a generally strong ability to meet its short-term obligations, although there have been periods of fluctuation.

It is important for stakeholders to monitor the current ratio over time to ensure the company can continue to meet its short-term financial obligations and maintain liquidity. A sustained current ratio above 1.5-2 is typically considered healthy for most companies, suggesting that Compass Minerals International Inc has largely maintained solid short-term liquidity levels based on the current ratio analysis.