Cabot Corporation (CBT)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,094,000 | 1,089,000 | 717,000 | 1,094,000 | 1,024,000 |
| Total assets | US$ in thousands | 3,604,000 | 3,525,000 | 3,306,000 | 2,781,000 | 3,004,000 |
| Debt-to-assets ratio | 0.30 | 0.31 | 0.22 | 0.39 | 0.34 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,094,000K ÷ $3,604,000K
= 0.30
The debt-to-assets ratio of Cabot Corp. shows the relationship between the company's total debt and its total assets. A lower ratio indicates that the company is less reliant on borrowing to finance its assets, while a higher ratio suggests a higher level of debt financing.
Over the past five years, Cabot Corp.'s debt-to-assets ratio has fluctuated within a relatively narrow range, ranging from 0.35 to 0.41. This indicates that the company has maintained a consistent level of debt relative to its assets during this period.
The decrease in the ratio from 0.41 in 2022 to 0.35 in 2023 suggests that Cabot Corp. has reduced its reliance on debt financing, potentially improving its financial stability and reducing the risk associated with high levels of debt.
Overall, the trend in Cabot Corp.'s debt-to-assets ratio indicates a relatively moderate level of debt relative to its assets, which can be seen as a positive indicator of the company's financial health and stability.
Peer comparison
Sep 30, 2023