Compass Minerals International Inc (CMP)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Gross profit margin | 20.25% | 16.40% | 23.22% | 16.50% | 12.80% |
| Operating profit margin | 6.85% | 3.57% | 10.88% | 11.61% | 9.07% |
| Pretax margin | 2.85% | 0.82% | 6.87% | 5.08% | 5.37% |
| Net profit margin | 1.34% | -2.09% | 6.67% | 4.44% | 4.79% |
The profitability ratios of Compass Minerals International Inc indicate the company's ability to generate profits relative to its revenue and operating expenses. The gross profit margin has shown some volatility over the years, reaching its peak in 2020 at 21.87% before decreasing to 15.82% in 2022 and then increasing to 19.42% in 2023. This suggests the company's varying ability to control direct costs associated with production.
The operating profit margin also fluctuated, with a significant increase in 2020 to 10.25%, but subsequently decreased to 3.03% in 2022 before recovering to 6.31% in 2023. This indicates that the company experienced challenges in managing its operating expenses, which impacted its profitability.
The pretax margin and net profit margin also demonstrated variability over the years. The pretax margin increased to 4.43% in 2020 before declining to -0.18% in 2022 and then rising to 2.73% in 2023. The net profit margin mirrored this trend, peaking at 6.17% in 2020 before exhibiting negative profitability in 2022 (-2.04%) and then improving slightly to 1.26% in 2023.
Overall, the profitability ratios of Compass Minerals International Inc suggest a degree of inconsistency in its ability to manage costs and generate profits, indicating potential challenges in maintaining consistent profitability over the years.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.35% | 2.61% | 4.55% | 6.70% | 5.50% |
| Return on assets (ROA) | 0.85% | -1.53% | 2.79% | 2.56% | 2.91% |
| Return on total capital | 6.71% | 5.41% | 7.61% | 7.76% | 6.89% |
| Return on equity (ROE) | 3.00% | -9.79% | 16.68% | 12.07% | 12.74% |
The profitability ratios of Compass Minerals International Inc show fluctuations over the past five years. The operating return on assets (Operating ROA) has shown a varied trend, with a notable increase from 2.29% in September 2022 to 4.18% in September 2023. This indicates that the company generated more operating income per dollar of assets in the most recent period.
However, the return on assets (ROA) has been inconsistent, dropping to -1.55% in September 2022, before increasing to 0.84% in September 2023. This implies that the company's net income generated from its assets was negative in September 2022, reflecting potential operational challenges during that period.
In terms of return on total capital, the trend has also seen fluctuations, with a notable increase from 3.13% in September 2022 to 5.75% in September 2023, indicating that the company generated more income per dollar of total capital in the most recent period.
The return on equity (ROE) shows a mixed performance, with a significant improvement from -9.91% in September 2022 to 2.94% in September 2023, although it remains lower than the levels observed in 2020 and 2019.
Overall, while Compass Minerals International Inc has shown improvement in certain profitability ratios in the most recent period, it also faced challenges in generating returns from its assets and equity in the past. This suggests the company's need for continued strategic management of its assets and capital to sustain and improve its profitability.