Compass Minerals International (Compass Minerals International) Interest Coverage

: 1.23 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Compass Minerals International's Operating Income for the three months ended in Dec. 2023 was $20 Mil. Compass Minerals International's Interest Expense for the three months ended in Dec. 2023 was $-16 Mil. Compass Minerals International's interest coverage for the quarter that ended in Dec. 2023 was 1.23. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Compass Minerals International's Interest Coverage or its related term are showing as below:

CMP' s Interest Coverage Range Over the Past 10 Years
Min: 0.78 Med: 1.92 Max: 15.47
Current: 1.23

CMP's Interest Coverage is ranked worse than
96.65% of 1344 companies
in the Metals & Mining industry
Industry Median: No Debt vs CMP: 1.23

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Compass Minerals International Interest Coverage Historical Data

The historical data trend for Compass Minerals International's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Compass Minerals International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Sep21

Sep22

Sep23

Interest Coverage

2.05

1.64

1.78

0.78

1.43

Compass Minerals International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.01	3.37	-	0.30	1.23

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Compass Minerals International's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Compass Minerals International Interest Coverage Distribution

For the Metals & Mining industry and Basic Materials sector, Compass Minerals International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Compass Minerals International's Interest Coverage falls into.

Compass Minerals International Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Compass Minerals International's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Compass Minerals International's Interest Expense was $-56 Mil. Its Operating Income was $79 Mil. And its Long-Term Debt & Capital Lease Obligation was $800 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	79.1	/	-55.5
	=	1.43

Compass Minerals International's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Compass Minerals International's Interest Expense was $-16 Mil. Its Operating Income was $20 Mil. And its Long-Term Debt & Capital Lease Obligation was $909 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	19.5	/	-15.8
	=	1.23

The higher the ratio, the stronger the company's Financial Strength is.

Compass Minerals International (NYSE:CMP) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Compass Minerals International Interest Coverage Related Terms

Thank you for viewing the detailed overview of Compass Minerals International's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Compass Minerals International (Compass Minerals International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Compass Minerals International Inc (NYSE:CMP) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

CM8:Germany CM8:Germany

Address

9900 West 109th Street, Suite 100, Overland Park, KS, USA, 66210

Website

https://www.compassminerals.com

Compass Minerals currently produces two primary products: salt and specialty potash fertilizer. The company's main assets include rock salt mines in Ontario, Louisiana, and the United Kingdom and a salt brine operation at the Great Salt Lake in Utah that produces sulfate of potash and magnesium chloride. Compass' salt products are used for deicing and also by industrial and consumer end markets. The firm's sulfate of potash is used by growers of high-value crops that are sensitive to standard potash. Compass also sells fire retardants, with its magnesium chloride-based products used to combat forest fires.

Executives

Joseph E Reece	director	ONE VALERO WAY, BUILDING D, SUITE 200, SAN ANTONIO TX 78249
James D. Standen	officer: Interim CFO & Treasurer	9900 W. 109 STREET, SUITE 100, OVERLAND PARK KS 66210
Jill V Gardiner	director	C/O COMPASS MINERALS INTERNATIONAL, INC., 9900 W 109TH ST STE 100, OVERLAND PARK KS 66210
Shane T Wagnon	director	C/O COMPASS MINERALS INTERNATIONAL, INC., 9900 W 109TH ST STE 100, OVERLAND PARK KS 66210
Jon A Chisholm	director	C/O COMPASS MINERALS INTERNATIONAL, INC., 9900 W 109TH ST STE 100, OVERLAND PARK KS 66210
Km&t Investment Holdings, Llc	director, 10 percent owner	4111 E 37TH ST N, WICHITA KS 67220
Koch Industries Inc	director, 10 percent owner	4111 EAST 37TH STREET NORTH, WICHITA KS 67220
Melissa M Miller	director	201 ISABELLA STREET, PITTSBURGH PA 15212
Kevin S Crutchfield	director, officer: President and CEO	ONE ALPHA PLACE, P.O. BOX 2345, ABINGDON VA 24212
Mary L Frontczak	officer: Chief Legal Officer	9900 W 109TH STREET, SUITE 100, OVERLAND PARK KS 66210
Lori A Walker	director
Amy Yoder	director	C/O SPECTRUM BRANDS, INC., 6 CONCOURSE PARKWAY, SUITE 3300, ATLANTA GA 30328
Richard P Dealy	director	777 HIDDEN RIDGE, IRVING TX 75038
Edward C Dowling	director	19 NEDS POINT ROAD, MATTAPOISETT MA 02739
Teresa D Cook	officer: Chief Accounting Officer	C/O COMPASS MINERALS INTERNATIONAL, INC., 9900 W 109TH ST STE 100, OVERLAND PARK KS 66210