Cabot Corporation (CBT)
Receivables 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 |
| Receivables | US$ in thousands | 733,000 | 732,000 | 744,000 | 726,000 | 695,000 | 688,000 | 767,000 | 779,000 | 836,000 | 876,000 | 791,000 | 660,000 | 645,000 | 633,000 | 578,000 | 513,000 | 418,000 | 362,000 | 462,000 | 485,000 |
| 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 |
September 30, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $3,994,000K ÷ $733,000K
= 5.45
Over the past 20 quarters, Cabot Corporation's receivables turnover ratio has shown some variability but generally remained within a range of 4.70 to 7.69. The ratio measures how efficiently the company is able to collect cash from its credit sales within a given period. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.
Looking at the trend, the receivables turnover ratio peaked at 7.69 in Q2 2020, indicating an efficient collection process at that time. Subsequently, the ratio fluctuated but generally trended downwards, hitting a low of 4.70 in Q2 2022 before recovering slightly. This decline may suggest potential issues with collecting outstanding payments from customers or changes in the credit policies of the company.
It is essential for Cabot Corporation to monitor its receivables turnover ratio regularly to ensure a healthy balance between extending credit to customers and efficiently collecting payments. Further analysis of the company's accounts receivable aging and collection policies could provide insights into the reasons behind the fluctuations in the receivables turnover ratio.
Peer comparison
Sep 30, 2024