Compass Minerals International Inc (CMP)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-169,200	-89,200	-62,800	12,000	7,000	-37,300	-27,800	-25,100	39,500	-167,000	-126,800	-124,900	-185,300	63,100	91,100	97,400	88,900	62,500	57,400	59,600
Total stockholders’ equity	US$ in thousands	352,100	400,400	463,400	521,000	542,000	494,200	509,800	256,400	300,900	286,500	288,000	186,600	123,800	378,300	319,900	333,300	355,700	517,700	459,500	522,900
ROE		-48.05%	-22.28%	-13.55%	2.30%	1.29%	-7.55%	-5.45%	-9.79%	13.13%	-58.29%	-44.03%	-66.93%	-149.68%	16.68%	28.48%	29.22%	24.99%	12.07%	12.49%	11.40%

June 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-169,200K ÷ $352,100K
= -48.05%

The return on equity (ROE) for Compass Minerals International Inc has shown significant fluctuations over the past few quarters. There was a downward trend in ROE from December 2021 to March 2024, with the lowest point being -149.68% in March 2021. This indicates that the company was experiencing challenges generating profits relative to its equity during this period.

However, there was a slight improvement in ROE in the most recent quarter, reaching -48.05% in June 2024, compared to -22.28% in March 2024. It is worth noting that the negative ROE values suggest the company's net income was insufficient to cover its equity during these periods.

In contrast, there were some positive ROE values in the historical data, such as 29.22% in March 2020 and 28.48% in September 2020. These instances reflect periods when the company was able to generate higher returns relative to its equity.

Overall, the fluctuating ROE figures highlight the company's profitability challenges and the need for sustained efforts to improve operational efficiency and financial performance. Monitoring this metric over time will be crucial to assess the company's ability to generate value for its shareholders.