Cabot Corporation (CBT)

Liquidity ratios

	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
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
Quick ratio	1.24	1.30	1.32	1.17	1.14	1.23	1.08	0.98	0.94	0.99	0.71	0.63	0.71	1.14	1.12	1.16	1.08	1.06	1.07	1.15
Cash ratio	0.29	0.27	0.29	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

Cabot Corporation's liquidity ratios have shown some fluctuation over the past few quarters. The current ratio has generally been above 2, indicating that the company has had more than enough current assets to cover its short-term liabilities. However, there was a slight dip in the current ratio in the most recent quarter compared to the previous periods.

The quick ratio has also been relatively strong, consistently above 1, suggesting that Cabot has a sufficient level of liquid assets to meet its short-term obligations without relying on inventory. Although there was a decrease in the quick ratio in the most recent quarter, it remains above 1, indicating good liquidity.

The cash ratio, which measures the ability to cover current liabilities with cash and cash equivalents, has been fluctuating around 0.2 to 0.3 over the quarters. This indicates that Cabot has a modest level of cash reserves relative to its current liabilities, with some variability in the cash position.

Overall, while Cabot Corporation's liquidity ratios have experienced some fluctuations, the company generally maintains a strong liquidity position with sufficient current assets to cover its short-term obligations. Management should continue to monitor and manage liquidity effectively to support ongoing operations and financial stability.

Additional liquidity measure

		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
Cash conversion cycle	days	73.84	134.50	136.54	141.42	81.88	128.19	132.57	140.33	84.53	151.86	149.92	136.84	75.07	146.90	150.25	141.80	65.79	111.30	123.43	122.27

The cash conversion cycle (CCC) of Cabot Corporation, a measure of how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales, has varied over the last several quarters.

Looking at the data provided, we can see fluctuations in the CCC, indicating changes in the efficiency of Cabot Corporation's operating cycle over time. The CCC has ranged from as low as 65.79 days to as high as 151.86 days in recent quarters.

It is important to note that a lower CCC is generally favorable as it signifies that the company is able to collect cash from sales more quickly and efficiently. Conversely, a higher CCC could indicate inefficiencies in managing inventory, accounts receivable, and accounts payable.

Analyzing Cabot Corporation's CCC trends can provide insights into the company's working capital management and operational efficiency. Monitoring these fluctuations over time can help assess the effectiveness of the company's strategies in managing its cash conversion cycle.