Cabot Corporation (CBT)
Fixed asset turnover
| 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 | Sep 30, 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,924,000 | 3,931,000 | 4,078,000 | 4,259,000 | 4,318,000 | 4,321,000 | 4,113,000 | 3,881,000 | 3,631,000 | 3,409,000 | 3,164,000 | 2,765,000 | 2,633,000 | 2,614,000 | 2,782,000 | 3,109,000 | 3,243,000 | 3,337,000 | 3,360,000 | 3,369,000 |
| Property, plant and equipment | US$ in thousands | 1,444,000 | 1,412,000 | 1,364,000 | 1,353,000 | 1,304,000 | 1,270,000 | 1,273,000 | 1,291,000 | 1,267,000 | 1,376,000 | 1,359,000 | 1,334,000 | 1,353,000 | 1,314,000 | 1,412,000 | 1,369,000 | 1,395,000 | 1,348,000 | 1,336,000 | 1,297,000 |
| Fixed asset turnover | 2.72 | 2.78 | 2.99 | 3.15 | 3.31 | 3.40 | 3.23 | 3.01 | 2.87 | 2.48 | 2.33 | 2.07 | 1.95 | 1.99 | 1.97 | 2.27 | 2.32 | 2.48 | 2.51 | 2.60 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,924,000K ÷ $1,444,000K
= 2.72
Cabot Corp.'s fixed asset turnover ratio has been fluctuating over the past 8 quarters, ranging from a low of 2.72 in Q1 2024 to a high of 3.40 in Q4 2022. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar invested in fixed assets.
From Q1 2023 to Q4 2022, there is a general decreasing trend in the fixed asset turnover ratio, suggesting a potential decrease in efficiency in utilizing fixed assets to generate revenue during this period. However, the ratio picked up again in Q1 2024.
The fluctuations in the fixed asset turnover ratio may indicate changes in the company's asset base, production processes, or revenue generation strategies. Further analysis of the company's financial statements and operations would be necessary to understand the underlying reasons for these fluctuations and assess the overall performance and efficiency of Cabot Corp. in managing its fixed assets.
Peer comparison
Dec 31, 2023