Cabot Corporation (CBT)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.34% | 20.48% | 23.44% | 19.13% | 20.53% |
| Operating profit margin | 13.38% | 9.00% | 13.32% | 0.80% | 9.17% |
| Pretax margin | 10.61% | 7.20% | 10.94% | -1.80% | 6.80% |
| Net profit margin | 11.32% | 4.84% | 7.33% | -9.10% | 4.70% |
Cabot Corp.'s profitability has exhibited fluctuations in recent years. The gross profit margin has ranged from 19.13% to 23.44% over the past five years, with a slight improvement in 2023 at 21.34%. Although the operating profit margin has also shown variability, it has generally remained within a narrow band of 5.78% to 13.46%. The pretax margin has demonstrated significant volatility, swinging from a negative -1.15% in 2020 to a high of 12.00% in 2021, before settling at 11.60% in 2023. Notably, the net profit margin has experienced considerable fluctuations as well, ranging from a negative -9.10% in 2020 to a peak of 11.12% in 2023, suggesting a trend of inconsistency in Cabot Corp.'s underlying profitability.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.59% | 11.04% | 13.73% | 0.76% | 10.19% |
| Return on assets (ROA) | 12.35% | 5.93% | 7.56% | -8.56% | 5.23% |
| Return on total capital | 21.50% | 18.47% | 25.36% | 0.34% | 14.14% |
| Return on equity (ROE) | 35.21% | 23.27% | 26.40% | -34.44% | 15.73% |
Cabot Corp.'s profitability ratios show a positive trend over the past five years. The operating ROA has increased from 11.15% in 2019 to 14.68% in 2023, indicating the company's improved ability to generate operating income from its assets. The ROA has also shown an upward trend, reaching 12.13% in 2023 from a negative figure in 2020, suggesting a turnaround in the company's ability to generate profits from its assets.
Return on total capital has also exhibited a favorable trend, increasing from 16.29% in 2019 to 21.02% in 2023, demonstrating the company's improved efficiency in generating returns from its capital investments. The ROE has seen a significant improvement, reaching 34.57% in 2023 compared to -34.44% in 2020, indicating the company's enhanced profitability in relation to shareholders' equity. Overall, these ratios suggest that Cabot Corp. has been successful in improving its profitability over the past five years.