Compass Minerals International Inc (CMP)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	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	1,225,600
Total assets	US$ in thousands	1,652,100	1,805,300	1,818,000	1,732,600	1,784,700	1,764,700	1,643,500	1,577,000	1,647,200	1,693,100	1,972,500	668,300	2,261,500	2,157,800	2,085,800	2,110,800	2,443,200	2,329,800	2,320,900	2,308,600
Debt-to-assets ratio		0.53	0.50	0.44	0.41	0.46	0.47	0.58	0.56	0.56	0.59	0.58	0.00	0.57	0.60	0.60	0.59	0.53	0.58	0.55	0.53

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $872,200K ÷ $1,652,100K
= 0.53

The debt-to-assets ratio of Compass Minerals International Inc has shown some fluctuation over the past few quarters. The ratio has been above 0.50 consistently for the last few quarters, indicating that the company relies more on debt financing to fund its operations and investments compared to its asset base.

The ratio reached its peak at 0.60 in some quarters, suggesting a relatively higher level of debt in relation to its total assets during those periods. However, it is worth noting that there was a significant anomaly in the ratio reported for the quarter ending March 31, 2021, where the ratio unexpectedly dropped to 0.00. This anomaly could be due to a unique event or accounting adjustment in that particular period.

Overall, the trend in the debt-to-assets ratio indicates that Compass Minerals International Inc has maintained a significant portion of its assets financed by debt, which may expose the company to higher financial risk, especially in times of economic uncertainty or rising interest rates. Monitoring this ratio along with other financial metrics can provide a more comprehensive understanding of the company's financial health and risk profile.