Compass Minerals International Inc (CMP)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	387,700	459,800	517,200	536,700	485,400	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	538,800
Debt-to-capital ratio		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	0.69

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $872,200K ÷ ($872,200K + $387,700K)
= 0.69

The debt-to-capital ratio of Compass Minerals International Inc has shown some fluctuations over the past few quarters. The ratio stood at 0.69 as of March 31, 2024, indicating that 69% of the company's capital structure was financed through debt. This represents an increase from the previous quarter's ratio of 0.66 and a noticeable improvement from the relatively higher levels seen in the second half of 2022.

Prior to the recent quarter, the company experienced a gradual decline in the debt-to-capital ratio from the peak of 0.86 in the third quarter of 2021, where the ratio was unusually high and then remarkably dropped to 0.00 in the first quarter of 2022. This drastic reduction likely reflects a significant change in the company's capital structure or debt obligations during that period.

Overall, the trend in the debt-to-capital ratio suggests some variation in the company's leverage and capital financing strategies. A higher ratio indicates higher reliance on debt financing, while a lower ratio implies a more balanced mix of debt and equity in the capital structure. It would be essential to monitor future developments to assess the company's financial stability and risk profile.