Compass Minerals International Inc (CMP)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	521,000	256,400	378,300	517,700	540,200
Debt-to-capital ratio		0.61	0.79	0.77	0.71	0.71

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $800,300K ÷ ($800,300K + $521,000K)
= 0.61

The debt-to-capital ratio of Compass Minerals International Inc has varied over the past five years. As of September 30, 2023, the ratio stands at 0.61, showing a significant decrease compared to the previous year's 0.79. This indicates that the company's reliance on debt to finance its operations has reduced, which can be seen as a positive trend. Looking back further, the ratio was relatively stable between 2018 and 2020, ranging from 0.72 to 0.78. This suggests that the company has maintained a consistent balance between debt and capital during this period. Overall, the declining trend in the debt-to-capital ratio could indicate improved financial stability and lower financial risk for the company. However, it is essential to further analyze the company's debt structure and its ability to service and manage its debt obligations to fully assess its financial health.