Compass Minerals International Inc (CMP)

Liquidity ratios

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
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
Quick ratio 0.91 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 1.00
Cash ratio 0.20 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 0.15

The liquidity ratios of Compass Minerals International Inc indicate its ability to meet short-term obligations and efficiently manage its current assets.

The current ratio, which measures the company's ability to pay off its current liabilities with current assets, has been relatively stable over time, ranging between 1.55 and 3.13. This indicates that the company has a comfortable cushion of current assets to cover its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also varied but generally reflects a more conservative liquidity position compared to the current ratio. The ratio ranged from 0.10 to 1.59, with some periods showing a dip below 1, which suggests a potential difficulty in covering immediate liabilities without relying on inventory.

The cash ratio, which focuses solely on the most liquid assets, shows a more volatile pattern indicating potential fluctuations in the company's cash position. While the ratio has varied widely from 0.06 to 0.90, the recent improvement suggests an enhanced ability to cover short-term obligations with cash on hand.

Overall, Compass Minerals International Inc's liquidity position appears reasonable, with the current ratio consistently above 2 indicating a healthy liquidity position, while the quick ratio and cash ratio show some variability that may warrant closer monitoring, especially in managing short-term cash flows and working capital efficiently.

Additional liquidity measure

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
Cash conversion cycle days 326.24 478.22 589.62 534.80 354.91 442.48 424.92 450.15 139.10 250.95 217.22 112.22 508.21 506.28 420.02 301.96 414.81 632.57 611.48 199.47

The cash conversion cycle of Compass Minerals International Inc has fluctuated over the past several quarters, indicating variability in the company's efficiency in managing its working capital. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In the most recent quarter, ending March 31, 2024, the company's cash conversion cycle was 326.24 days, a noticeable improvement from the previous quarter, where it was 478.22 days. This suggests that Compass Minerals was able to manage its working capital more efficiently during this period.

However, looking at historical data, the cash conversion cycle has shown significant volatility, with periods of both shorter and longer cycles. For example, in the quarter ending September 30, 2019, the cycle was 632.57 days, significantly longer compared to the most recent quarter. This indicates a potential challenge in effectively managing working capital during that period.

Overall, analyzing the cash conversion cycle can provide insights into the company's operational efficiency and effectiveness in managing its cash flows, working capital, and inventory turnover. Continued monitoring and analysis of this metric can help identify trends and areas for improvement in the company's financial performance.