Cabot Corporation (CBT)
Debt-to-equity 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-equity ratio | 0.87 | 1.21 | 0.76 | 1.58 | 1.03 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,094,000K ÷ $1,264,000K
= 0.87
The debt-to-equity ratio for Cabot Corp. has exhibited some fluctuation over the past five years. In 2023, the ratio stands at 1.01, indicating a notable decrease from the previous year's 1.61. This reduction suggests a relatively lower level of financial leverage and reliance on debt to finance the company's operations compared to the prior year. It is also worth noting that the ratio was slightly lower in 2019 at 1.07, indicating a similar trend of decreased reliance on debt in comparison to that year. However, the ratio was higher in 2020 and 2022 at 1.61, suggesting a higher proportion of debt relative to equity in those years. Overall, the fluctuations in the debt-to-equity ratio may indicate varying degrees of financial risk and capital structure management by Cabot Corp.
Peer comparison
Sep 30, 2023