Cabot Corporation (CBT)
Debt-to-equity 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-equity ratio | 0.76 | 0.87 | 1.21 | 0.76 | 1.58 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,087,000K ÷ $1,425,000K
= 0.76
The debt-to-equity ratio of Cabot Corporation has shown fluctuations over the past five years. In 2024, the ratio stands at 0.76, indicating that for every dollar of equity, the company has $0.76 in debt. This implies a moderate level of leverage, with a higher proportion of funding coming from equity rather than debt.
Comparing this to the previous years, we observe a downward trend from 2022 to 2024, suggesting a reduction in the company's reliance on debt financing. In 2022, the ratio was relatively high at 1.21, signifying a higher level of debt compared to equity. This was followed by a significant decrease to 0.76 in 2023 and 2024, indicating a more balanced capital structure.
However, it is worth noting that in 2020, the debt-to-equity ratio spiked to 1.58, indicating a higher level of debt relative to equity. This could have been a result of increased borrowing during that period.
Overall, the downward trend in the debt-to-equity ratio from 2022 to 2024 reflects a healthier financial position for Cabot Corporation, with a more conservative approach towards debt management.
Peer comparison
Sep 30, 2024