Cabot Corporation (CBT)
Fixed asset turnover
| Sep 30, 2024 | 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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,994,000 | 3,958,000 | 3,910,000 | 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 |
| Property, plant and equipment | US$ in thousands | 1,534,000 | 1,430,000 | 1,427,000 | 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 |
| Fixed asset turnover | 2.60 | 2.77 | 2.74 | 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 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,994,000K ÷ $1,534,000K
= 2.60
Cabot Corporation's fixed asset turnover ratio has exhibited fluctuation over the past several quarters. The ratio measures the efficiency with which the company generates revenue from its investment in fixed assets.
The ratio has ranged from a low of 1.95 in December 2020 to a high of 3.40 in December 2022. This indicates that, on average, for every dollar invested in fixed assets, Cabot Corporation generated between $1.95 and $3.40 in sales revenue over the period analyzed.
The trend shows a general decline from the peak in December 2022 through September 2023, with the ratio decreasing to 2.78. However, there was a slight increase in the ratio in the following quarters, reaching 2.77 in June 2024.
Overall, the trend in fixed asset turnover suggests that Cabot Corporation has been effectively managing its fixed assets to generate revenue, although there have been fluctuations in the efficiency of asset utilization over the period covered by the data. Further analysis of the company's operational and strategic factors may help in understanding the changes in the fixed asset turnover ratio.
Peer comparison
Sep 30, 2024