Compass Minerals International Inc (CMP)

Quick 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	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	—	—
Receivables	US$ in thousands	92,300	143,000	168,600	129,300	95,800	159,700	202,200	167,200	108,600	197,300	199,700	91,000	-4,300	185,100	194,200	168,600	225,000	342,400	216,000	178,500
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
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

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($12,800K + $—K + $92,300K) ÷ $188,400K
= 0.56

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio greater than 1 indicates that a company has enough liquid assets to cover its current liabilities.

In the case of Compass Minerals International Inc, the quick ratio has fluctuated over the past several quarters. In the most recent quarter (June 30, 2024), the quick ratio was 0.56, indicating that the company may have difficulty meeting its short-term obligations with its most liquid assets. This could be a cause for concern for the company's liquidity position.

Looking back at previous quarters, the quick ratio has shown a mix of strengths and weaknesses. For example, the quick ratio was notably strong in the quarter ended March 31, 2023, at 1.48, and December 31, 2022, at 1.59. These high ratios suggest that Compass Minerals had a significant amount of liquid assets relative to its current liabilities during those periods.

On the other hand, the quick ratio was particularly weak in the quarter ended June 30, 2021, at 0.27 and March 31, 2021, at 0.10. These low ratios indicate potential difficulties in meeting short-term obligations with available liquid assets during those periods.

Overall, it is important for investors and stakeholders to closely monitor Compass Minerals' quick ratio and assess the company's ability to manage its short-term liquidity effectively. Fluctuations in the quick ratio could indicate changing financial circumstances that may warrant further investigation and analysis.