Cabot Corporation (CBT)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,994,000 | 3,931,000 | 4,321,000 | 3,409,000 | 2,614,000 |
| Property, plant and equipment | US$ in thousands | 1,534,000 | 1,412,000 | 1,270,000 | 1,376,000 | 1,314,000 |
| Fixed asset turnover | 2.60 | 2.78 | 3.40 | 2.48 | 1.99 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,994,000K ÷ $1,534,000K
= 2.60
Cabot Corporation's fixed asset turnover has shown a fluctuating trend over the past five years. The ratio decreased from 1.99 in 2020 to 2.48 in 2021, indicating a less efficient utilization of fixed assets in generating sales during that period. However, there was a notable improvement in 2022 with a fixed asset turnover of 3.40, signaling better productivity and efficiency in asset management. Subsequently, in 2023, the ratio slightly decreased to 2.78 but remained relatively high compared to previous years.
The most recent data for 2024 shows a further decline in fixed asset turnover to 2.60, suggesting a decrease in the company's ability to generate sales from its fixed assets compared to the previous year. This could be due to various factors such as changes in production levels, asset aging, or inefficiencies in asset utilization.
Overall, while Cabot Corporation has experienced fluctuations in its fixed asset turnover over the years, management may need to assess and potentially improve the efficiency of using its fixed assets to generate sales revenue in order to enhance overall operational performance and profitability.
Peer comparison
Sep 30, 2024