Compass Minerals International Inc (CMP)
Return on total capital
Sep 30, 2023 | Sep 30, 2022 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) | US$ in thousands | 88,400 | 65,100 | 127,700 | 140,000 | 128,300 |
Long-term debt | US$ in thousands | 800,300 | 947,600 | 1,299,100 | 1,285,900 | 1,321,200 |
Total stockholders’ equity | US$ in thousands | 521,000 | 256,400 | 378,300 | 517,700 | 540,200 |
Return on total capital | 6.69% | 5.41% | 7.61% | 7.76% | 6.89% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $88,400K ÷ ($800,300K + $521,000K)
= 6.69%
The return on total capital for Compass Minerals International Inc has varied over the past five years. The return on total capital was 5.75% as of September 30, 2023, showing an improvement from the 3.13% recorded in the previous year. However, the return on total capital was higher in 2019 and 2018, at 8.44% and 6.89% respectively. The return on total capital then decreased to 6.10% in 2020 before starting to recover in 2022 and 2023. This suggests that the company's ability to generate profits from the total capital employed has fluctuated, indicating a need for further analysis to understand the factors contributing to these changes.
Peer comparison
Sep 30, 2023