Cabot Corporation (CBT)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 223,000 | 238,000 | 206,000 | 168,000 | 151,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 772,000 | 822,000 | 1,105,000 | 1,147,000 | 529,000 |
| Cash ratio | 0.29 | 0.29 | 0.19 | 0.15 | 0.29 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($223,000K
+ $—K)
÷ $772,000K
= 0.29
The cash ratio for Cabot Corporation has shown fluctuations over the past five years. As of September 30, 2024, the cash ratio stands at 0.29, which is consistent with the ratio observed in 2023 and 2020. However, there was a notable increase from the ratio of 0.19 recorded in 2022 and a significant improvement from the ratio of 0.15 in 2021.
A cash ratio of 0.29 implies that for every dollar of current liabilities, Cabot Corporation has $0.29 available in cash or cash equivalents to cover its short-term obligations. The upward trend in the cash ratio from 2021 to 2024 suggests an improvement in the company's liquidity position and its ability to meet its immediate financial commitments.
Overall, maintaining a relatively stable cash ratio over the years indicates that Cabot Corporation has been effectively managing its liquidity and ensuring that it has sufficient cash on hand to address short-term obligations, which is a positive sign for the company's financial health.
Peer comparison
Sep 30, 2024