Compass Minerals International Inc (CMP)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,595,200 | 1,652,100 | 1,805,300 | 1,816,900 | 1,733,500 | 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 |
| 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 |
| Financial leverage ratio | 4.53 | 4.13 | 3.90 | 3.49 | 3.20 | 3.61 | 3.46 | 6.41 | 5.24 | 5.75 | 5.88 | 10.57 | 5.40 | 5.98 | 6.75 | 6.26 | 5.93 | 4.72 | 5.07 | 4.44 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,595,200K ÷ $352,100K
= 4.53
The financial leverage ratio of Compass Minerals International Inc has shown fluctuations over the past few quarters. The ratio has ranged from 3.20 to 10.57. A higher financial leverage ratio indicates that the company relies more on debt financing to fund its operations and investments, which can amplify returns but also increase financial risk.
The notable increase in the financial leverage ratio in the most recent quarter from 3.90 to 4.53 suggests a higher level of debt relative to equity compared to the previous quarter. This may be a result of the company taking on additional debt or experiencing a decrease in equity.
It is important for investors and analysts to closely monitor changes in the financial leverage ratio as it can impact the company's ability to meet its financial obligations and overall financial health. High levels of leverage can make a company more vulnerable to economic downturns and interest rate fluctuations, while low levels of leverage may indicate underutilization of debt to optimize capital structure.
Peer comparison
Jun 30, 2024