Cabot Corporation (CBT)
Quick ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 238,000 | 206,000 | 168,000 | 151,000 | 169,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 695,000 | 836,000 | 645,000 | 418,000 | 530,000 |
| Total current liabilities | US$ in thousands | 822,000 | 1,105,000 | 1,147,000 | 529,000 | 599,000 |
| Quick ratio | 1.14 | 0.94 | 0.71 | 1.08 | 1.17 |
September 30, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($238,000K
+ $—K
+ $695,000K)
÷ $822,000K
= 1.14
The quick ratio of Cabot Corp. has shown varying trends over the past five years. The quick ratio is a measure of a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates stronger liquidity and a lower risk of default on short-term obligations.
In 2023, the quick ratio improved to 1.27 from 1.05 in 2022, indicating a better ability to meet short-term obligations using liquid assets. This is a positive sign as it suggests improved liquidity and financial health.
In 2021, the quick ratio was 0.79, which was the lowest among the five years. This may be a cause for concern as it indicates a potential difficulty in meeting short-term obligations with liquid assets alone.
In 2020 and 2019, the quick ratios were 1.17 and 1.24 respectively, showing relatively stable liquidity positions.
Overall, the quick ratio has fluctuated, but the recent improvement in 2023 suggests an enhanced ability to cover short-term obligations using liquid assets. However, it is important to monitor the trend and assess the company's ability to maintain liquidity in the future.
Peer comparison
Sep 30, 2023