Cabot Corporation (CBT)
Debt-to-capital ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,087,000 | 1,083,000 | 1,088,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 1,425,000 | 1,346,000 | 1,367,000 | 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 |
| Debt-to-capital ratio | 0.43 | 0.45 | 0.44 | 0.45 | 0.46 | 0.49 | 0.50 | 0.52 | 0.55 | 0.55 | 0.44 | 0.47 | 0.43 | 0.53 | 0.57 | 0.57 | 0.61 | 0.56 | 0.56 | 0.52 |
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 been relatively stable over the past few years, ranging from 0.43 to 0.61. The ratio indicates the proportion of the company's capital structure that is funded by debt, with values closer to 1 indicating higher leverage.
Based on the data provided, the ratio has fluctuated within a moderate range, with a slight downward trend in recent periods. This suggests that the company has been managing its debt levels effectively in relation to its total capital, potentially reducing its financial risk and improving its overall financial health.
It is important to note that a lower debt-to-capital ratio typically signifies a lower risk for investors and creditors, as the company relies less on debt financing. Conversely, a higher ratio may indicate a higher level of financial risk and potential challenges in servicing debt obligations.
Overall, Cabot Corporation's debt-to-capital ratio demonstrates a consistent and prudent approach to capital structure management, reflecting a balanced mix of debt and equity in its financing decisions.
Peer comparison
Sep 30, 2024