Cabot Corporation (CBT)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.08 | 1.98 | 1.65 | 1.24 | 1.85 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,605,000K ÷ $772,000K
= 2.08
The current ratio of Cabot Corporation has shown a fluctuating trend over the past five years, ranging from 1.24 to 2.08. The ratio indicates the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 suggests a company has more current assets than current liabilities, which indicates a healthy financial position in the short term.
In the latest year, as of September 30, 2024, Cabot Corporation's current ratio stands at 2.08, representing an improvement compared to the previous year. This increase indicates that the company has a stronger ability to meet its short-term obligations using its current assets. It suggests that Cabot Corporation may have increased its liquidity or reduced its short-term liabilities relative to the previous year.
However, it's important to note that while a higher current ratio generally signifies a better liquidity position, an excessively high ratio may also indicate an inefficient use of assets. Therefore, it is advisable for Cabot Corporation to monitor its current ratio over time and ensure it remains balanced to support its operations and growth effectively.
Peer comparison
Sep 30, 2024