Compass Minerals International Inc (CMP)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-85,700	-59,300	15,500	10,500	-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	63,800
Total stockholders’ equity	US$ in thousands	387,700	459,800	517,200	536,700	485,400	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	538,800
ROE		-22.10%	-12.90%	3.00%	1.96%	-7.68%	-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%	11.84%

March 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-85,700K ÷ $387,700K
= -22.10%

The return on equity (ROE) for Compass Minerals International Inc has exhibited significant fluctuations over the past few quarters. The ROE values ranged from as low as -149.68% in March 2021 to as high as 29.22% in June 2020.

Overall, the company experienced negative ROE in several quarters, indicating that during those periods, the company's net income was insufficient to generate a positive return for its shareholders. This may raise concerns about the company's profitability and financial performance during those periods.

However, there were also quarters where Compass Minerals International Inc managed to generate positive ROE, with the highest being 29.22% in June 2020. This indicates that the company was able to generate higher profits relative to shareholders' equity in those periods.

The negative ROE values, especially the significantly low ones, suggest that the company may have experienced challenges in generating profits or managing its assets efficiently during those periods. It would be crucial for stakeholders to analyze the underlying reasons for these fluctuations in ROE to assess the company's financial health and performance accurately.