Cabot Corporation (CBT)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 223,000 | 197,000 | 206,000 | 244,000 | 238,000 | 220,000 | 205,000 | 190,000 | 206,000 | 208,000 | 215,000 | 179,000 | 168,000 | 173,000 | 146,000 | 147,000 | 151,000 | 162,000 | 142,000 | 173,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 733,000 | 732,000 | 744,000 | 726,000 | 695,000 | 688,000 | 767,000 | 779,000 | 836,000 | 876,000 | 791,000 | 660,000 | 645,000 | 633,000 | 578,000 | 513,000 | 418,000 | 362,000 | 462,000 | 485,000 |
| 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 |
| 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 |
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 fluctuations over the past few quarters. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets.
In the most recent quarter ending September 30, 2024, the quick ratio was 1.24, indicating that Cabot Corporation had $1.24 in liquid assets available to cover each dollar of current liabilities. This suggests a relatively healthy liquidity position.
The quick ratio has generally been above 1 in recent quarters, implying that the company has had sufficient liquid assets to meet its short-term obligations. An increasing trend in the quick ratio from 1.14 in September 2023 to 1.30 in June 2024 and further to 1.32 in March 2024 is a positive sign of improving liquidity.
However, there were periods of lower quick ratios such as in March 2022 and June 2022 when the quick ratio dipped to 0.71 and 0.63 respectively, raising concerns about the company's ability to cover its short-term liabilities with its current liquid assets during those periods.
Overall, it is important for Cabot Corporation to maintain a healthy quick ratio above 1 to demonstrate its ability to meet short-term obligations without relying heavily on inventory or other less liquid assets.
Peer comparison
Sep 30, 2024