Cabot Corporation (CBT)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 572,000 | 507,000 | 367,000 | 422,000 | 6,000 |
| Long-term debt | US$ in thousands | 1,087,000 | 1,094,000 | 1,089,000 | 717,000 | 1,094,000 |
| Total stockholders’ equity | US$ in thousands | 1,425,000 | 1,264,000 | 898,000 | 947,000 | 691,000 |
| Return on total capital | 22.77% | 21.50% | 18.47% | 25.36% | 0.34% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $572,000K ÷ ($1,087,000K + $1,425,000K)
= 22.77%
Cabot Corporation's return on total capital has shown a fluctuating trend over the past five years. In 2024, the company achieved a return on total capital of 22.77%, showing an improvement from the previous year's 21.50%. This indicates that Cabot Corporation generated $0.22 in profit for every dollar of total capital employed in the business during the fiscal year. The company's performance in 2024 stands out compared to 2020, where the return on total capital was a mere 0.34%, highlighting a significant turnaround in profitability. Overall, the upward trend in return on total capital reflects the company's ability to efficiently utilize its capital resources to generate profits for its stakeholders.
Peer comparison
Sep 30, 2024