Compass Minerals International Inc (CMP)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Long-term debt	US$ in thousands	800,300	947,600	1,299,100	1,285,900	1,321,200
Total assets	US$ in thousands	1,818,000	1,643,500	2,261,500	2,443,200	2,367,900
Debt-to-assets ratio		0.44	0.58	0.57	0.53	0.56

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $800,300K ÷ $1,818,000K
= 0.44

The debt-to-assets ratio of Compass Minerals International Inc has shown a declining trend from 0.58 in December 2018 to 0.44 in September 2023. This indicates that the company's reliance on debt to finance its assets has decreased over the years. A lower debt-to-assets ratio suggests that the company has a smaller proportion of its assets financed by debt, which can be considered a positive indicator of financial stability. It also indicates improved ability to cover its liabilities with its assets. This declining trend in the ratio reflects a potential improvement in the company's financial risk and leverage. It is important to note that a lower debt-to-assets ratio may also indicate reduced financial leverage, providing the company with more flexibility and financial strength. However, further analysis of the company's overall financial health and the composition of its debt is necessary to fully assess its leverage and risk management.