Compass Minerals International (Compass Minerals International) Sloan Ratio % : 5.33% (As of Dec. 2023)

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What is Compass Minerals International Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Compass Minerals International's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.33%.

As of Dec. 2023, Compass Minerals International has a Sloan Ratio of 5.33%, indicating the company is in the safe zone and there is no funny business with accruals.

Compass Minerals International Sloan Ratio % Historical Data

The historical data trend for Compass Minerals International's Sloan Ratio % 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.

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Compass Minerals International Sloan Ratio % Chart

Compass Minerals International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Sep21

Sep22

Sep23

Sloan Ratio %

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0.07

-1.06

-3.99

4.81

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
Sloan Ratio %	Get a 7-Day Free Trial															-6.00	-6.74	2.59	4.81	5.33

Competitive Comparison of Compass Minerals International's Sloan Ratio %

For the Other Industrial Metals & Mining subindustry, Compass Minerals International's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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's Sloan Ratio % Distribution in the Metals & Mining Industry

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

* The bar in red indicates where Compass Minerals International's Sloan Ratio % falls into.

Compass Minerals International Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

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

Sloan Ratio	=	(Net Income (A: Sep. 2023 )	-	Cash Flow from Operations (A: Sep. 2023 )
	-	Cash Flow from Investing (A: Sep. 2023 ))	/	Total Assets (A: Sep. 2023 )
	=	(15.5	-	107.9
	-	-179.8)	/	1818
	=	4.81%

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

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(-59.3	-	40.2
	-	-195.7)	/	1805.3
	=	5.33%

Compass Minerals International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -21.6 (Mar. 2023 ) + 39.9 (Jun. 2023 ) + -2.5 (Sep. 2023 ) + -75.1 (Dec. 2023 ) = $-59 Mil.
Compass Minerals International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 141.8 (Mar. 2023 ) + -22.6 (Jun. 2023 ) + -13.4 (Sep. 2023 ) + -65.6 (Dec. 2023 ) = $40 Mil.
Compass Minerals International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -23.9 (Mar. 2023 ) + -56.3 (Jun. 2023 ) + -79.5 (Sep. 2023 ) + -36 (Dec. 2023 ) = $-196 Mil.

Compass Minerals International (NYSE:CMP) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Dec. 2023, Compass Minerals International has a Sloan Ratio of 5.33%, indicating the company is in the safe zone and there is no funny business with accruals.

Compass Minerals International Sloan Ratio % Related Terms

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Compass Minerals International (Compass Minerals International) Business Description

Industry

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

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