Cabot Corporation (CBT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,264,000 | 898,000 | 947,000 | 691,000 | 998,000 |
| ROE | 35.21% | 23.27% | 26.40% | -34.44% | 15.73% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $445,000K ÷ $1,264,000K
= 35.21%
To analyze Cabot Corp.'s return on equity (ROE) over the past five years, we can see a significant fluctuation in the company's performance.
In 2019, the ROE was at 15.53%, indicating a moderate return for shareholders. However, in 2020, the ROE dropped significantly to -34.44%, suggesting that the company's net income was insufficient to cover its equity. This negative figure might raise concerns about the company's financial health and management efficiency.
The following year, in 2021, the ROE rebounded to 26.08%, indicating a notable improvement in the company's ability to generate profit from shareholders' equity. This positive trend continued in 2022, with an ROE of 22.94%, though it was slightly lower than the previous year.
The most recent data in 2023 shows a further improvement in the company's performance, with an ROE of 34.57%, suggesting a significant increase in profitability relative to shareholders' equity. This may indicate better financial management and operational efficiency.
Overall, Cabot Corp.'s ROE has shown volatility over the past five years, with a sharp drop in 2020 followed by a consistent recovery in the subsequent years. While the recent ROE of 34.57% indicates a strong performance, investors may want to monitor the company's ability to sustain and build on this improvement.
Peer comparison
Sep 30, 2023