Cabot Corporation (CBT)
Debt-to-assets ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,087,000 | 1,094,000 | 1,089,000 | 717,000 | 1,094,000 |
| Total assets | US$ in thousands | 3,736,000 | 3,604,000 | 3,525,000 | 3,306,000 | 2,781,000 |
| Debt-to-assets ratio | 0.29 | 0.30 | 0.31 | 0.22 | 0.39 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,087,000K ÷ $3,736,000K
= 0.29
The debt-to-assets ratio of Cabot Corporation has shown a downward trend over the past five years, decreasing from 0.39 in 2020 to 0.29 in 2024. This indicates that the company has been relying less on debt to finance its assets over the years. A lower debt-to-assets ratio implies a lower financial risk as it shows a smaller proportion of assets are being funded by debt, which can be viewed positively by stakeholders including investors and creditors. Additionally, a declining trend in the debt-to-assets ratio may indicate improved financial health and stability as the company is managing its debt levels more effectively. Overall, the decreasing trend in Cabot Corporation's debt-to-assets ratio reflects a more conservative approach to financing its operations and investments.
Peer comparison
Sep 30, 2024