Cabot Corporation (CBT)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,931,000 | 4,321,000 | 3,409,000 | 2,614,000 | 3,337,000 |
| Receivables | US$ in thousands | 695,000 | 836,000 | 645,000 | 418,000 | 530,000 |
| Receivables turnover | 5.66 | 5.17 | 5.29 | 6.25 | 6.30 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,931,000K ÷ $695,000K
= 5.66
The receivables turnover ratio measures how efficiently a company is able to collect on its credit sales. Cabot Corp.'s receivables turnover has fluctuated over the past five years, with the ratio being 5.66 in 2023, 5.17 in 2022, 5.29 in 2021, 6.25 in 2020, and 6.30 in 2019.
A higher receivables turnover ratio indicates that the company is collecting its receivables more quickly, which is generally favorable. The decreasing trend in receivables turnover from 2019 to 2022 suggests that the company may be taking longer to collect its receivables. However, the increase in the receivables turnover ratio in 2023 is a positive sign, indicating that Cabot Corp. was able to collect its receivables more efficiently in that year.
It is important for the company to maintain an optimal balance between the speed of collection and maintaining good customer relationships. Further analysis of the reasons behind the fluctuations in the receivables turnover ratio would provide a deeper understanding of Cabot Corp.'s receivables management efficiency.
Peer comparison
Sep 30, 2023