Compass Minerals International Inc (CMP)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income	US$ in thousands	15,500	-25,100	63,100	62,500	68,800
Total assets	US$ in thousands	1,818,000	1,643,500	2,261,500	2,443,200	2,367,900
ROA		0.85%	-1.53%	2.79%	2.56%	2.91%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $15,500K ÷ $1,818,000K
= 0.85%

To analyze Compass Minerals International Inc's return on assets (ROA), we can observe its performance from 2018 to 2023. ROA measures a company's ability to generate profits from its assets.

In 2018, the ROA was 2.88%, indicating that the company generated $2.88 in profit for every $100 of assets. This suggests efficient asset utilization to generate profits.

In 2019, the ROA remained strong at 2.51%, indicating continued effective use of assets to generate profits.

However, in 2020, the ROA increased to 2.74%, reflecting an improvement in the company's ability to generate profits from its assets.

The following year, in 2022, the ROA decreased to -1.55%, which suggests that the company incurred a loss. This could be attributed to decreased profitability relative to its asset base.

By 2023, there was an improvement in the ROA to 0.84%, indicating a partial recovery in the company's ability to generate profits from its assets.

Overall, the fluctuation in ROA over the years indicates variability in the company's performance in efficiently utilizing its assets to generate profits. It is important for stakeholders to monitor this ratio closely to assess the company's operational efficiency and profitability.