Cabot Corporation (CBT)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 445,000 | 209,000 | 250,000 | -238,000 | 157,000 |
| Total assets | US$ in thousands | 3,604,000 | 3,525,000 | 3,306,000 | 2,781,000 | 3,004,000 |
| ROA | 12.35% | 5.93% | 7.56% | -8.56% | 5.23% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $445,000K ÷ $3,604,000K
= 12.35%
The return on assets (ROA) for Cabot Corp. has shown fluctuations over the past five years. In 2023, the ROA was 12.13%, indicating an increase from the previous year's 5.84% and a significant improvement from 2020's negative ROA of -8.56%. This suggests that the company has been more effective in generating profits from its assets in 2023 compared to the previous year. The 2023 ROA also surpassed the 2019 ROA of 5.16%, indicating a positive trend over the five-year period.
The 2023 ROA of 12.13% reflects positively on the efficiency of Cabot Corp. in utilizing its assets to generate profit. It suggests that the company has been able to increase its profitability relative to its asset base, which is a favorable sign for investors and stakeholders. Overall, the trend in ROA indicates an improved financial performance and efficiency in asset utilization for Cabot Corp.
Peer comparison
Sep 30, 2023