Cabot Corporation (CBT)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 223,000 | 238,000 | 206,000 | 168,000 | 151,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 733,000 | 695,000 | 836,000 | 645,000 | 418,000 |
| Total current liabilities | US$ in thousands | 772,000 | 822,000 | 1,105,000 | 1,147,000 | 529,000 |
| Quick ratio | 1.24 | 1.14 | 0.94 | 0.71 | 1.08 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($223,000K
+ $—K
+ $733,000K)
÷ $772,000K
= 1.24
The quick ratio of Cabot Corporation has shown a fluctuating trend over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In 2024, the quick ratio improved to 1.24 from 1.14 in 2023, indicating that the company had $1.24 of liquid assets available to cover each dollar of current liabilities. This suggests a stronger liquidity position compared to the previous year.
Looking back, the quick ratio has generally been increasing since 2020 when it was 1.08. This indicates a positive trend in the company's ability to meet its short-term obligations without relying heavily on selling inventory.
However, the quick ratio was at its lowest in 2021 at 0.71, signaling potential liquidity challenges for the company that year. The subsequent improvement in 2022 and further growth in 2023 and 2024 suggest management efforts to enhance liquidity and strengthen the company's financial position.
Overall, the recent upward trend in Cabot Corporation's quick ratio indicates an improvement in its short-term liquidity position, which is a positive indicator of the company's ability to meet its financial obligations.
Peer comparison
Sep 30, 2024