Compass Minerals International Inc (CMP)

Liquidity ratios

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
Current ratio 2.90 2.98 3.07 2.19 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
Quick ratio 0.56 0.90 1.01 0.61 0.63 1.48 1.59 0.92 0.82 1.08 1.11 0.27 0.10 0.73 0.84 0.90 1.29 1.27 0.86 0.72
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

The liquidity ratios of Compass Minerals International Inc show varying levels of liquidity over the historical period. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has generally been above 2. This indicates that the company has a strong ability to meet its short-term liabilities with its current assets.

In contrast, the quick ratio, which excludes inventory from current assets, fluctuates more significantly and has been below 1 in several periods. This suggests that the company may face challenges in meeting its immediate obligations without relying on inventory, which may not be as easily converted to cash.

The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, also shows fluctuations over time. While it has generally been below 1, indicating that the company has limited cash reserves relative to its current liabilities, it has shown some improvement in more recent periods.

Overall, Compass Minerals International Inc has maintained a strong current ratio, but its quick and cash ratios indicate potential liquidity challenges in certain periods. It is important for the company to closely monitor its liquidity position and manage its working capital effectively to ensure it can meet its short-term obligations.

Additional liquidity measure

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 conversion cycle days 376.90 332.62 478.22 604.10 534.80 354.91 442.48 424.92 450.15 139.10 250.95 217.22 112.22 508.21 506.28 420.02 301.96 414.81 632.57 611.48

The cash conversion cycle of Compass Minerals International Inc has shown fluctuation over the past few quarters. The company's cash conversion cycle is a measure of how long it takes for the company to convert its investments in inventory and other resources into cash from sales.

Looking at the data, we can observe that the cash conversion cycle has ranged from as low as 112.22 days to as high as 632.57 days over the past few quarters. This indicates that Compass Minerals International Inc has experienced significant variability in the efficiency of its working capital management.

A shorter cash conversion cycle suggests that the company is able to sell its inventory quickly and collect cash from customers promptly, which is generally a positive sign of efficient operations. On the other hand, a longer cash conversion cycle can indicate potential issues in inventory management, sales collection, or payment terms with suppliers.

It is important for Compass Minerals International Inc to closely monitor and manage its cash conversion cycle to ensure that it maintains optimal levels of working capital and liquidity. By analyzing the factors influencing the cycle, the company can identify areas for improvement and implement strategies to accelerate cash flows and enhance overall financial performance.