Cabot Corporation (CBT)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,034,000 | 3,013,000 | 2,998,000 | 3,048,000 | 3,092,000 | 3,244,000 | 3,413,000 | 3,450,000 | 3,436,000 | 3,270,000 | 3,059,000 | 2,827,000 | 2,610,000 | 2,406,000 | 2,152,000 | 2,081,000 | 2,114,000 | 2,248,000 | 2,474,000 | 2,583,000 |
| Inventory | US$ in thousands | 552,000 | 553,000 | 551,000 | 617,000 | 585,000 | 592,000 | 625,000 | 704,000 | 664,000 | 664,000 | 633,000 | 546,000 | 523,000 | 487,000 | 436,000 | 403,000 | 359,000 | 393,000 | 469,000 | 479,000 |
| Inventory turnover | 5.50 | 5.45 | 5.44 | 4.94 | 5.29 | 5.48 | 5.46 | 4.90 | 5.17 | 4.92 | 4.83 | 5.18 | 4.99 | 4.94 | 4.94 | 5.16 | 5.89 | 5.72 | 5.28 | 5.39 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,034,000K ÷ $552,000K
= 5.50
Cabot Corporation's inventory turnover ratio has shown some fluctuations over the past few years. The ratio indicates the efficiency with which the company is managing its inventory.
From December 2019 to September 2020, there was a steady increase in inventory turnover, indicating that Cabot was selling its inventory at a faster rate. This may suggest effective inventory management or increasing demand for its products during this period.
The ratio reached its peak at 5.89 in September 2020, signaling the company's ability to convert inventory into sales more frequently. However, from December 2020 to March 2022, there was a slight decline in the inventory turnover ratio, which could indicate challenges in managing inventory levels efficiently during that period.
From March 2022 to September 2024, the ratio has maintained a relatively stable range between 4.83 and 5.50. This could imply that Cabot has been able to maintain a consistent pace of inventory turnover, which is crucial for optimizing working capital and profitability.
Overall, while the inventory turnover ratio has shown fluctuations, the recent stability suggests that Cabot Corporation has been effectively managing its inventory to support its sales operations.
Peer comparison
Sep 30, 2024
Sep 30, 2024