Cabot Corporation (CBT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,425,000 | 1,264,000 | 898,000 | 947,000 | 691,000 |
| ROE | 26.67% | 35.21% | 23.27% | 26.40% | -34.44% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $380,000K ÷ $1,425,000K
= 26.67%
The return on equity (ROE) for Cabot Corporation has fluctuated over the past five years as follows: 26.67% in 2024, 35.21% in 2023, 23.27% in 2022, 26.40% in 2021, and -34.44% in 2020. The positive ROE figures in 2024, 2023, 2022, and 2021 suggest that the company has been generating profits efficiently with respect to its shareholders' equity during those years. The higher the ROE, the more effectively the company is utilizing its equity to generate profit.
However, the negative ROE in 2020 indicates that the company experienced a net loss for that year in relation to its shareholders' equity. This could be due to various factors such as decreased profitability, increased expenses, or significant write-offs.
Overall, the recent positive trend in ROE from 2020 to 2024 indicates an improvement in the company's profitability and efficiency in utilizing its equity, which is a positive sign for investors and stakeholders. It is essential for the company to monitor and sustain this trend to ensure long-term financial health and stability.
Peer comparison
Sep 30, 2024