Compass Minerals International Inc (CMP)

Debt-to-equity 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-equity ratio		2.25	1.98	1.55	1.33	1.70	1.63	3.70	2.94	3.22	3.49	6.18	0.00	3.43	4.03	3.74	3.52	2.48	2.96	2.44	2.27

March 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $872,200K ÷ $387,700K
= 2.25

The debt-to-equity ratio of Compass Minerals International Inc has fluctuated over the past few quarters, ranging from a low of 1.33 to a high of 6.18. This ratio indicates the proportion of the company's total liabilities to its shareholders' equity, reflecting its level of financial leverage.

An increasing trend in the debt-to-equity ratio typically suggests that the company is relying more on debt financing relative to equity, which may increase financial risk. Conversely, a decreasing trend indicates a stronger equity position relative to debt.

In the most recent quarter, as of March 31, 2024, the debt-to-equity ratio stands at 2.25, indicating that the company is financing a significant portion of its operations through debt. Investors and creditors may monitor this ratio closely to assess the company's ability to meet its debt obligations and the overall risk profile of the business.

It is essential for Compass Minerals International Inc to carefully manage its debt levels to maintain a healthy balance between debt and equity financing, ensuring long-term financial stability and sustainability.