Cabot Corporation (CBT)
Return on total capital
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 286,000 | 316,000 | 338,000 |
| Long-term debt | US$ in thousands | 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 | 1,024,000 | 1,017,000 | 672,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 998,000 | 1,092,000 | 1,104,000 |
| Return on total capital | 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% | 14.14% | 14.98% | 19.03% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $517,000K ÷ ($1,098,000K + $1,329,000K)
= 21.30%
Analyzing Cabot Corp.'s return on total capital over the past eight quarters reveals a fluctuating trend. The company's return on total capital ranged from a high of 24.86% in Q4 2022 to a low of 20.93% in Q2 2022. Despite some variability, the return on total capital has generally been healthy and consistently above 20% throughout the period under review. This indicates that the company has been efficiently utilizing its total capital to generate profits. However, the slight downward trend in recent quarters suggests a possible need for the company to focus on optimizing its capital allocation strategies to maintain or improve its return on total capital in the future.
Peer comparison
Dec 31, 2023