Cabot Corporation (CBT)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.04% | 21.34% | 20.48% | 23.44% | 19.13% |
| Operating profit margin | 15.37% | 13.38% | 9.00% | 13.32% | 0.80% |
| Pretax margin | 12.29% | 10.61% | 7.20% | 10.94% | -1.80% |
| Net profit margin | 9.51% | 11.32% | 4.84% | 7.33% | -9.10% |
Cabot Corporation's profitability ratios have shown a mixed trend over the past five years. The gross profit margin has generally improved from 19.13% in 2020 to 24.04% in 2024, indicating the company's ability to effectively control its cost of goods sold.
The operating profit margin has also witnessed a positive trajectory, increasing from 0.80% in 2020 to 15.37% in 2024. This indicates that Cabot has been successful in managing its operating expenses and generating higher operating profits relative to revenue.
Similarly, the pretax margin has shown improvement, rising from -1.80% in 2020 to 12.29% in 2024. This suggests that the company has been able to enhance its profitability before accounting for taxes, reflecting efficient cost management and revenue generation.
However, the net profit margin, while fluctuating, has generally shown improvement from -9.10% in 2020 to 9.51% in 2024. This indicates that Cabot has been able to effectively manage its overall expenses, including taxes and interest payments, to generate higher net profits relative to revenue.
Overall, Cabot Corporation has demonstrated positive trends in its profitability ratios over the years, indicating improving operational efficiency and profitability levels.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.43% | 14.59% | 11.04% | 13.73% | 0.76% |
| Return on assets (ROA) | 10.17% | 12.35% | 5.93% | 7.56% | -8.56% |
| Return on total capital | 22.77% | 21.50% | 18.47% | 25.36% | 0.34% |
| Return on equity (ROE) | 26.67% | 35.21% | 23.27% | 26.40% | -34.44% |
Cabot Corporation's profitability ratios show a mixed performance over the past five years.
- Operating return on assets (Operating ROA) has shown an increasing trend from 0.76% in 2020 to 16.43% in 2024, indicating that the company has been able to generate more operating income from its assets over time.
- Return on assets (ROA) exhibited fluctuations over the same period, with a peak of 12.35% in 2023 and a low of -8.56% in 2020. This ratio indicates the company's ability to generate profit from its total assets, and the negative value in 2020 could be a cause for concern.
- Return on total capital has generally shown an increasing trend, reaching 22.77% in 2024 from 0.34% in 2020. This ratio indicates how effectively the company is generating profits from its total capital, including debt and equity.
- Return on equity (ROE) has also displayed fluctuation, with a significant improvement from -34.44% in 2020 to 26.67% in 2024. ROE reflects the company's ability to generate profit from shareholders' equity, and the positive trend is a positive sign for investors.
Overall, while Cabot Corporation has shown improvement in key profitability ratios such as Operating ROA, Return on Total Capital, and ROE, there have been fluctuations in ROA. It will be crucial for the company to continue monitoring and managing its assets effectively to sustain and improve its profitability in the long run.