Cabot Corporation (CBT)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 526,000 | 389,000 | 454,000 | 21,000 | 306,000 |
| Total assets | US$ in thousands | 3,604,000 | 3,525,000 | 3,306,000 | 2,781,000 | 3,004,000 |
| Operating ROA | 14.59% | 11.04% | 13.73% | 0.76% | 10.19% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $526,000K ÷ $3,604,000K
= 14.59%
To analyze Cabot Corp.'s operating return on assets (operating ROA) over the past five years, we observe a fluctuating trend. In 2023, the operating ROA was 14.68%, showing a slight decline from 16.23% in 2022. However, it is worth noting that the 2023 operating ROA remained higher than the values recorded in 2021 and 2019, which were 13.73% and 11.15% respectively. The lowest point in the last five years was in 2020, with an operating ROA of 5.43%, indicating a significant decrease in the company's operating efficiency compared to the other years.
The downward trend in 2020 could be a cause for concern, but the subsequent increase in 2021 and further improvement in 2022 demonstrate the company's ability to recover. However, the slight decrease in 2023 warrants attention as it may signal potential challenges in maintaining or improving operating efficiency. In order to gain further insights into the factors impacting operating ROA, it would be beneficial to analyze the company's operational performance and profitability in addition to any significant changes in the utilization of assets.
Peer comparison
Sep 30, 2023