Cabot Corporation (CBT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.04 | 1.98 | 2.17 | 1.93 | 1.83 | 1.65 | 1.70 | 1.26 | 1.21 | 1.24 | 1.95 | 1.89 | 1.97 | 1.85 | 1.99 | 2.08 | 2.08 | 2.02 | 2.07 | 1.34 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,692,000K ÷ $830,000K
= 2.04
The current ratio of Cabot Corp. has displayed some fluctuations over the past eight quarters. The ratio provides insights into the company's ability to cover its short-term liabilities with its current assets.
In Q1 2024, the current ratio stood at 2.04, indicating that the company had $2.04 in current assets for every $1 of current liabilities. This suggests a relatively strong liquidity position, as compared to the previous quarter where the ratio was 1.98.
Looking back at Q3 2023, the company had a current ratio of 2.17, showing a peak in liquidity during that period. However, in Q2 2023, the ratio decreased to 1.93, raising some concerns about the company's ability to cover its short-term obligations.
The lowest current ratio during the period under review was observed in Q2 2022 at 1.26. This indicates potential liquidity challenges for the company at that time. Overall, the current ratios have varied significantly, reflecting fluctuations in the company's liquidity position. More stable and consistent current ratios over time would be desirable for Cabot Corp. to demonstrate a strong financial position and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023