Cabot Corporation (CBT)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,264,000 | 898,000 | 947,000 | 691,000 | 998,000 |
| Debt-to-capital ratio | 0.46 | 0.55 | 0.43 | 0.61 | 0.51 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,094,000K ÷ ($1,094,000K + $1,264,000K)
= 0.46
The debt-to-capital ratio of Cabot Corp. has shown some fluctuation over the past five years. In 2023, the ratio stands at 0.50, representing a decrease from the previous year's 0.62. This indicates that the company's reliance on debt relative to its total capital has decreased. While the ratio has shown some variability, it remains within a moderate range, suggesting that Cabot Corp. has maintained a balanced approach in utilizing debt to finance its operations and investments. It will be important to monitor future trends in the debt-to-capital ratio to assess the company's long-term financial leverage.
Peer comparison
Sep 30, 2023