Cabot Corporation (CBT)
Return on assets (ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 380,000 | 445,000 | 209,000 | 250,000 | -238,000 |
| Total assets | US$ in thousands | 3,736,000 | 3,604,000 | 3,525,000 | 3,306,000 | 2,781,000 |
| ROA | 10.17% | 12.35% | 5.93% | 7.56% | -8.56% |
September 30, 2024 calculation
ROA = Net income ÷ Total assets
= $380,000K ÷ $3,736,000K
= 10.17%
Cabot Corporation's return on assets (ROA) has fluctuated over the past five years, ranging from -8.56% in 2020 to a high of 12.35% in 2023. In 2024, the ROA decreased to 10.17%.
A consistently positive ROA indicates that the company is effectively utilizing its assets to generate profits. The decreasing trend in ROA from 2023 to 2024 may suggest a decline in efficiency in generating profits from its assets.
It is essential for Cabot Corporation to analyze the factors affecting its ROA and implement strategies to improve asset utilization and profitability in order to maintain sustainable financial performance.
Peer comparison
Sep 30, 2024