Cabot Corporation (CBT)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 572,000 | 563,000 | 542,000 | 517,000 | 507,000 | 511,000 | 525,000 | 552,000 | 367,000 | 297,000 | 264,000 | 232,000 | 422,000 | 273,000 | 147,000 | 48,000 | 6,000 | 160,000 | 234,000 | 268,000 |
| Long-term debt | US$ in thousands | 1,087,000 | 1,083,000 | 1,088,000 | 1,098,000 | 1,094,000 | 1,093,000 | 1,094,000 | 1,091,000 | 1,089,000 | 1,097,000 | 711,000 | 714,000 | 717,000 | 1,088,000 | 1,087,000 | 1,085,000 | 1,094,000 | 1,164,000 | 1,190,000 | 1,095,000 |
| Total stockholders’ equity | US$ in thousands | 1,425,000 | 1,346,000 | 1,367,000 | 1,329,000 | 1,264,000 | 1,131,000 | 1,099,000 | 1,009,000 | 898,000 | 895,000 | 918,000 | 794,000 | 947,000 | 955,000 | 811,000 | 823,000 | 691,000 | 930,000 | 925,000 | 1,027,000 |
| Return on total capital | 22.77% | 23.18% | 22.08% | 21.30% | 21.50% | 22.98% | 23.94% | 26.29% | 18.47% | 14.91% | 16.21% | 15.38% | 25.36% | 13.36% | 7.74% | 2.52% | 0.34% | 7.64% | 11.06% | 12.63% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $572,000K ÷ ($1,087,000K + $1,425,000K)
= 22.77%
The return on total capital for Cabot Corporation has fluctuated over the periods presented. Generally, the return on total capital has been above 20%, indicating the company's ability to generate returns on the total capital employed in its operations.
The highest return on total capital was observed in the March 2023 quarter at 26.29%, reflecting efficient utilization of capital to generate profits. However, there have been periods with lower returns, such as the December 2019 quarter at 0.34% and the March 2020 quarter at 2.52%, which may indicate challenges or lower profitability during those times.
Overall, the trend in the return on total capital for Cabot Corporation shows variability but with a tendency towards strong returns, highlighting the company's ability to effectively utilize its total capital to generate returns for its stakeholders.
Peer comparison
Sep 30, 2024