Cabot Corporation (CBT)
Total asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 3,337,000 | 3,360,000 | 3,369,000 |
| Total assets | US$ in thousands | 3,695,000 | 3,604,000 | 3,387,000 | 3,519,000 | 3,535,000 | 3,525,000 | 3,568,000 | 3,524,000 | 3,315,000 | 3,306,000 | 3,225,000 | 3,047,000 | 2,980,000 | 2,781,000 | 3,019,000 | 3,097,000 | 3,151,000 | 3,004,000 | 3,119,000 | 3,272,000 |
| Total asset turnover | 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 | 1.11 | 1.08 | 1.03 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $3,924,000K ÷ $3,695,000K
= 1.06
The total asset turnover ratio is a measure of how efficiently a company is utilizing its assets to generate revenue. A higher total asset turnover indicates that the company is generating more sales for each dollar of assets it holds.
Analyzing the trend in Cabot Corp.'s total asset turnover ratio over the past eight quarters reveals fluctuations in the company's asset utilization efficiency. The total asset turnover ratio ranged from 1.06 to 1.23 during this period.
The ratio peaked at 1.23 in Q1 2023, indicating that Cabot Corp. generated $1.23 in sales for every dollar of assets it held during that quarter. This suggests that the company effectively utilized its assets to generate revenue at that time.
Subsequently, there was a slight decline in the total asset turnover ratio in Q2 and Q3 2023 to 1.21 and 1.20, respectively. However, the ratio remained relatively high, indicating continued efficient asset utilization by Cabot Corp.
In Q4 2023 and Q1 2024, the total asset turnover ratio further decreased to 1.09 and 1.06, respectively. This decline may suggest a reduction in the company's ability to generate sales relative to its asset base during these quarters.
Overall, while Cabot Corp. has shown fluctuations in its total asset turnover ratio over the past eight quarters, the company generally maintained a relatively high level of asset utilization efficiency. It is important for the company to monitor this ratio closely to ensure optimal utilization of its assets to drive revenue generation in the future.
Peer comparison
Dec 31, 2023