Compass Minerals International Inc (CMP)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-91,900	-86,300	5,400	88,400	98,100	91,000	75,500	65,100	125,500	-61,600	-58,600	-53,600	-118,000	127,900	170,300	183,300	174,500	140,000	127,400	124,700
Interest expense (ttm)	US$ in thousands	63,200	60,300	57,400	55,500	56,400	55,500	55,200	55,200	56,200	58,500	60,100	63,300	63,700	64,600	66,800	67,400	68,800	68,400	57,400	55,600
Interest coverage		-1.45	-1.43	0.09	1.59	1.74	1.64	1.37	1.18	2.23	-1.05	-0.98	-0.85	-1.85	1.98	2.55	2.72	2.54	2.05	2.22	2.24

June 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-91,900K ÷ $63,200K
= -1.45

The interest coverage ratio for Compass Minerals International Inc fluctuated over the periods provided in the table. The ratio indicates the company's ability to cover its interest expenses with its operating income. A ratio below 1 suggests that the company is not generating enough operating income to cover its interest payments.

Compass Minerals International Inc experienced negative interest coverage ratios in several periods, indicating that its operating income was insufficient to cover its interest expenses. The company showed improvement in its interest coverage in more recent periods, with ratios above 1. This suggests that the company's operating income was able to cover its interest expenses during these periods.

It is important to note the variability in the interest coverage ratio, with periods of stability and periods of decline. The negative ratios could signal potential financial distress or challenges in meeting debt obligations, while the positive ratios indicate an improvement in the company's ability to cover its interest expenses. Overall, monitoring the interest coverage ratio over time can provide insights into Compass Minerals International Inc's financial health and ability to meet its debt obligations.