Cabot Corporation (CBT)
Working capital 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 current assets | US$ in thousands | 1,692,000 | 1,626,000 | 1,602,000 | 1,742,000 | 1,800,000 | 1,820,000 | 1,871,000 | 1,778,000 | 1,609,000 | 1,425,000 | 1,370,000 | 1,224,000 | 1,125,000 | 978,000 | 983,000 | 1,171,000 | 1,196,000 | 1,210,000 | 1,335,000 | 1,523,000 |
| Total current liabilities | US$ in thousands | 830,000 | 822,000 | 738,000 | 904,000 | 984,000 | 1,105,000 | 1,100,000 | 1,407,000 | 1,327,000 | 1,147,000 | 704,000 | 647,000 | 570,000 | 529,000 | 494,000 | 563,000 | 574,000 | 599,000 | 645,000 | 1,133,000 |
| Working capital turnover | 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 | 5.46 | 4.87 | 8.64 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,924,000K ÷ ($1,692,000K – $830,000K)
= 4.55
Cabot Corp.'s working capital turnover has shown fluctuations over the past few quarters. The working capital turnover ratio measures how efficiently a company is using its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
In this case, we observe that the working capital turnover ratio has generally been declining from a peak of 10.46 in Q2 2022 to 4.55 in Q1 2024. This downward trend suggests a decrease in the company's efficiency in utilizing its working capital to support sales.
It is important for investors and stakeholders to closely monitor this trend as a declining working capital turnover ratio may indicate potential inefficiencies in the company's operations or liquidity management. It would be beneficial for the company to investigate the factors contributing to the declining ratio and take necessary actions to improve its working capital efficiency in the future.
Peer comparison
Dec 31, 2023