Compass Minerals International Inc (CMP)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-97,800	-4,100	79,100	81,200	78,300	50,400	42,900	37,800	117,300	125,400	122,400	131,200	99,400	167,500	180,200	174,600	163,600	135,700	138,200	136,900
Total assets	US$ in thousands	1,652,100	1,805,300	1,818,000	1,732,600	1,784,700	1,764,700	1,643,500	1,577,000	1,647,200	1,693,100	1,972,500	668,300	2,261,500	2,157,800	2,085,800	2,110,800	2,443,200	2,329,800	2,320,900	2,308,600
Operating ROA		-5.92%	-0.23%	4.35%	4.69%	4.39%	2.86%	2.61%	2.40%	7.12%	7.41%	6.21%	19.63%	4.40%	7.76%	8.64%	8.27%	6.70%	5.82%	5.95%	5.93%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-97,800K ÷ $1,652,100K
= -5.92%

Operating Return on Assets (Operating ROA) is a financial ratio that measures a company's ability to generate profits from its assets used in its primary operations.

Analyzing Compass Minerals International Inc's Operating ROA over the past 20 quarters reveals fluctuations in performance. The company experienced negative Operating ROA of -5.92% in the most recent quarter, indicating inefficiency in generating operating profits relative to its assets. This contrasts significantly with the peak performance seen in the first quarter of 2021 when the Operating ROA surged to 19.63%.

From the trend observed, there is variability in the company's ability to utilize its assets efficiently to generate operating income. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's operational efficiency and profitability. Further analysis, including comparison with industry peers and exploration of underlying factors driving these fluctuations, would provide additional insights into Compass Minerals International Inc's operational performance.