Cabot Corporation (CBT)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 5.45 5.41 5.26 5.40 5.66 5.93 5.55 5.54 5.17 4.70 4.91 5.50 5.29 5.00 4.78 5.13 6.25 7.69 6.73 6.69
Payables turnover 6.13 — — — 7.06 — — — 6.45 — — — 5.44 — — — 6.69 — — —
Working capital turnover 4.79 4.53 4.41 4.55 4.89 4.72 5.08 5.29 6.04 5.33 10.46 12.88 12.26 4.75 4.79 4.74 5.82 5.69 5.11 5.21

Cabot Corporation's inventory turnover has been relatively stable over the past few quarters, averaging around 5.2 to 5.5 times per year. This indicates that the company is efficient in managing its inventory and converting it into sales.

The receivables turnover ratio has been fluctuating but generally remains within the range of 5 to 6 times per year. This suggests that Cabot Corporation is efficient in collecting payments from its customers.

The payables turnover ratio has only been reported for some quarters, showing a range of 5.44 to 7.06 times per year. This ratio indicates how quickly the company pays its suppliers, with higher values generally considered more favorable.

The working capital turnover ratio has shown significant variability, ranging from 4.4 to 12.9 times per year. This ratio reflects how effectively the company utilizes its working capital to generate sales. The higher values seen in some quarters may indicate a more efficient use of working capital.

Overall, Cabot Corporation's activity ratios show a mixed performance over the quarters, with some stability in inventory and receivables turnover, while variability in payables turnover and working capital turnover suggests fluctuations in operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 66.41 66.99 67.08 73.89 69.06 66.61 66.84 74.48 70.54 74.12 75.53 70.50 73.14 73.88 73.95 70.68 61.98 63.81 69.19 67.69
Days of sales outstanding (DSO) days 66.99 67.50 69.45 67.53 64.53 61.58 65.73 65.85 70.62 77.74 74.39 66.35 69.06 73.02 76.30 71.11 58.37 47.49 54.24 54.59
Number of days of payables days 59.55 — — — 51.70 — — — 56.62 — — — 67.13 — — — 54.56 — — —

Cabot Corporation's days of inventory on hand (DOH) has been relatively stable over the past few quarters, hovering around 65-75 days, indicating that the company is efficient in managing its inventory levels. This suggests that Cabot is neither overstocking nor understocking its inventory, which can help minimize carrying costs and potential obsolescence.

In contrast, the days of sales outstanding (DSO) have shown more variability, ranging from 47 to 77 days. A higher DSO may indicate that Cabot is experiencing delays in receiving payments from customers, which could potentially affect cash flow and liquidity. However, the DSO has shown a decreasing trend in recent quarters, which could signify improvements in the company's accounts receivable management.

The number of days of payables for Cabot Corporation has been inconsistent, with data missing for some quarters. When available, payables have ranged from 51 to 67 days, suggesting that the company may have varying payment terms with its suppliers.

Overall, analyzing these activity ratios provides insight into Cabot Corporation's efficiency in managing its inventory, collecting receivables, and handling payables, all of which are crucial aspects of working capital management.

Long-term

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
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
Total asset turnover 1.07 1.11 1.09 1.06 1.09 1.20 1.21 1.22 1.23 1.15 1.10 1.10 1.03 0.98 0.91 0.88 0.94 0.92 1.00 1.03

Cabot Corporation's fixed asset turnover ratio has been generally decreasing over the past few quarters, from a high of 3.40 in the third quarter of 2022 to 2.60 in the most recent quarter. This indicates that the company is generating less revenue relative to its investment in fixed assets. However, the ratio has shown some fluctuations but has generally remained above 2, indicating efficient use of fixed assets.

In contrast, the total asset turnover ratio has also fluctuated but has remained relatively stable around 1.10 in the recent quarters. This ratio measures how effectively the company is utilizing all its assets to generate sales. The stability of this ratio suggests that Cabot Corporation is maintaining a consistent level of revenue relative to its total assets, although there may be room for improvement.

Overall, while the fixed asset turnover ratio shows a decreasing trend, the total asset turnover ratio suggests a more stable performance in terms of efficiency in asset utilization. It may be beneficial for Cabot Corporation to further analyze the use of its fixed assets to improve its overall asset turnover ratios.