Cabot Corporation (CBT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 244,000 | 238,000 | 220,000 | 205,000 | 190,000 | 206,000 | 208,000 | 215,000 | 179,000 | 168,000 | 173,000 | 146,000 | 147,000 | 151,000 | 162,000 | 142,000 | 173,000 | 169,000 | 147,000 | 176,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.29 | 0.29 | 0.30 | 0.23 | 0.19 | 0.19 | 0.19 | 0.15 | 0.13 | 0.15 | 0.25 | 0.23 | 0.26 | 0.29 | 0.33 | 0.25 | 0.30 | 0.28 | 0.23 | 0.16 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($244,000K
+ $—K)
÷ $830,000K
= 0.29
The cash ratio of Cabot Corp. has experienced fluctuations over the past eight quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
In Q1 2023, the cash ratio was 0.32, indicating that the company had $0.32 in cash for every $1 of current liabilities. This ratio improved in Q3 2023 to 0.44, signaling a stronger ability to meet short-term obligations. However, in Q4 2022, the ratio was relatively low at 0.29, suggesting a potential liquidity challenge.
Overall, the cash ratio for Cabot Corp. has generally been in the range of 0.25 to 0.44 over the eight quarters analyzed. It is important for the company to maintain a healthy cash ratio to ensure it can meet its short-term obligations without relying too heavily on external financing. Further analysis of the company's cash management practices and overall liquidity position would be beneficial in understanding its financial health.
Peer comparison
Dec 31, 2023