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	517,200	256,400	378,300	517,700	540,200
Return on total capital		6.71%	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 + $517,200K)
= 6.71%

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.