Cabot Corporation (CBT)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,626,000 | 1,820,000 | 1,425,000 | 978,000 | 1,210,000 |
| Total current liabilities | US$ in thousands | 822,000 | 1,105,000 | 1,147,000 | 529,000 | 599,000 |
| Current ratio | 1.98 | 1.65 | 1.24 | 1.85 | 2.02 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,626,000K ÷ $822,000K
= 1.98
The current ratio for Cabot Corp. has fluctuated over the past five years, indicating changes in the company's short-term liquidity position. The ratio stood at 1.98 in 2023, representing an improvement from the previous year's 1.65. This suggests that the company's current assets, such as cash, accounts receivable, and inventory, are more than sufficient to cover its current liabilities, including accounts payable and short-term debt. The increase in the current ratio from 2022 to 2023 reflects a stronger short-term liquidity position, potentially indicating improved financial health and the ability to meet its short-term obligations without relying heavily on external financing. However, it is essential to consider the trend over a longer period to understand the company's overall liquidity management.
Peer comparison
Sep 30, 2023