Cabot Corporation (CBT)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,994,000 | 3,931,000 | 4,321,000 | 3,409,000 | 2,614,000 |
| Total current assets | US$ in thousands | 1,605,000 | 1,626,000 | 1,820,000 | 1,425,000 | 978,000 |
| Total current liabilities | US$ in thousands | 772,000 | 822,000 | 1,105,000 | 1,147,000 | 529,000 |
| Working capital turnover | 4.79 | 4.89 | 6.04 | 12.26 | 5.82 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,994,000K ÷ ($1,605,000K – $772,000K)
= 4.79
The working capital turnover of Cabot Corporation has fluctuated over the past five years. In 2024, the company's working capital turnover was 4.79, slightly lower than the previous year's figure of 4.89. This indicates that Cabot Corporation generated $4.79 in revenue for every $1 of working capital in 2024, showing a slight decrease in efficiency compared to the previous year.
Looking back further, in 2022, the company's working capital turnover was 6.04, reflecting a higher level of efficiency in utilizing its working capital to generate revenue. The significant decrease in 2024 compared to 2022 may suggest a potential inefficiency in managing working capital during the latest period.
In 2021, Cabot Corporation had a notably high working capital turnover of 12.26, indicating that the company was very effective in generating revenue relative to its working capital during that year. However, this high ratio may also raise questions about the sustainability of such a level of efficiency over time.
Overall, the fluctuation in Cabot Corporation's working capital turnover over the years indicates varying levels of efficiency in utilizing its working capital to generate revenue. It is important for the company to closely monitor and manage its working capital to ensure optimal operational performance and financial health.
Peer comparison
Sep 30, 2024