Cabot Corporation (CBT)
Current ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,605,000 | 1,591,000 | 1,605,000 | 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 |
| Total current liabilities | US$ in thousands | 772,000 | 717,000 | 718,000 | 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 |
| Current ratio | 2.08 | 2.22 | 2.24 | 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 |
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 exhibited some fluctuations over the given period. Generally, the current ratio has been above 1, indicating that the company has had more current assets than current liabilities to cover its short-term obligations.
From Sep 2020 to Mar 2021, the current ratio remained relatively stable around 2, suggesting a healthy liquidity position. However, there was a notable decline in the current ratio in Jun 2021 and Sep 2021, possibly indicating a temporary strain on liquidity.
Subsequently, the company managed to improve its current ratio from Dec 2021 to Mar 2024, reaching a peak of 2.24 in Mar 2024. This upward trend reflects a stronger ability to meet short-term obligations with current assets.
It's essential for Cabot Corporation to sustain a healthy current ratio above 1 to ensure it can meet its short-term financial commitments. Variations in the current ratio could stem from changes in the company's current assets and liabilities, necessitating ongoing monitoring and management of liquidity levels.
Peer comparison
Sep 30, 2024