Compass Minerals International Inc (CMP)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.71	0.69	0.66	0.61	0.57	0.63	0.62	0.79	0.75	0.76	0.78	0.86	0.00	0.77	0.80	0.79	0.78	0.71	0.75	0.71

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $868,800K ÷ ($868,800K + $352,100K)
= 0.71

The debt-to-capital ratio of Compass Minerals International Inc has been fluctuating over the past years, indicating varying levels of debt relative to total capital employed by the company. The ratio has generally been within the range of 0.57 to 0.86, with some periods showing higher leverage compared to others.

In recent quarters, the trend has shown some variability, with the ratio decreasing from 0.71 in June 2023 to 0.61 in September 2023 before gradually increasing to 0.71 in June 2024. This suggests a slight increase in debt levels relative to capital over this period.

It is important to note that a higher debt-to-capital ratio usually indicates a higher level of financial risk as it implies a greater reliance on debt financing. On the other hand, a lower ratio may signify a more conservative financial structure with less dependence on debt.

Overall, the changes in Compass Minerals' debt-to-capital ratio should be monitored closely to assess the company's financial health and risk profile over time. Additional analysis and consideration of other financial ratios and metrics would provide a more comprehensive view of the company's financial position.