Compass Minerals International Inc (CMP)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-91,900	-86,300	5,400	88,400	98,100	91,000	75,500	65,100	125,500	-61,600	-58,600	-53,600	-118,000	127,900	170,300	183,300	174,500	140,000	127,400	124,700
Long-term debt	US$ in thousands	868,800	872,200	908,700	800,300	716,000	825,700	832,100	947,600	885,900	922,200	1,004,900	1,152,800	—	1,299,100	1,289,200	1,247,500	1,253,700	1,285,900	1,358,200	1,275,900
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
Return on total capital		-7.53%	-6.78%	0.39%	6.69%	7.80%	6.89%	5.63%	5.41%	10.57%	-5.10%	-4.53%	-4.00%	-95.32%	7.62%	10.58%	11.60%	10.84%	7.76%	7.01%	6.93%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-91,900K ÷ ($868,800K + $352,100K)
= -7.53%

Based on the data provided, Compass Minerals International Inc's return on total capital has shown varying performances over the past several quarters. The return on total capital was negative in most recent quarters, with values reaching as low as -7.53% in the latest quarter, Jun 30, 2024. This indicates that the company's profitability in relation to its total capital employed has been challenging.

There was a notable improvement in the return on total capital in the quarter ended Dec 31, 2023, where it stood at 0.39%. However, the performance fluctuated throughout the quarters with positive returns observed in some periods (e.g., Mar 31, 2023, and Dec 31, 2022) and negative returns in others (e.g., Jun 30, 2022, and Mar 31, 2022).

The significant decrease in return on total capital to -95.32% in Mar 31, 2021, is concerning and suggests a substantial decline in the company's profitability and/or capital efficiency during that period. It is important for stakeholders to closely monitor the company's ability to generate returns on the capital employed in its operations and to identify factors contributing to the fluctuating performance.