Cabot Corporation (CBT)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,425,000 | 1,264,000 | 898,000 | 947,000 | 691,000 |
| Debt-to-capital ratio | 0.43 | 0.46 | 0.55 | 0.43 | 0.61 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,087,000K ÷ ($1,087,000K + $1,425,000K)
= 0.43
The debt-to-capital ratio of Cabot Corporation has shown fluctuations over the past five years, as indicated in the table provided. The ratio decreased from 0.61 in 2020 to 0.43 in 2021, followed by an increase to 0.55 in 2022, and then decreased again to 0.46 in 2023. In the most recent period, as of September 30, 2024, the ratio improved to 0.43.
A lower debt-to-capital ratio typically indicates a company has a lower level of financial leverage and may be in a stronger position to weather economic downturns or operational challenges. On the other hand, a higher ratio could imply higher financial risk due to a greater reliance on debt financing.
The recent decrease in the debt-to-capital ratio of Cabot Corporation from 0.46 in 2023 to 0.43 in 2024 suggests the company may have reduced its debt relative to its total capital, potentially improving its financial stability and risk profile. Monitoring this ratio over time can provide insights into the company's capital structure and financial health.
Peer comparison
Sep 30, 2024