Cabot Corporation (CBT)
Debt-to-equity ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 1,024,000 | 1,017,000 | 672,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 998,000 | 1,092,000 | 1,104,000 |
| Debt-to-equity ratio | 0.83 | 0.87 | 0.97 | 1.00 | 1.08 | 1.21 | 1.23 | 0.77 | 0.90 | 0.76 | 1.14 | 1.34 | 1.32 | 1.58 | 1.25 | 1.29 | 1.07 | 1.03 | 0.93 | 0.61 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,098,000K ÷ $1,329,000K
= 0.83
The debt-to-equity ratio of Cabot Corp. has shown a decreasing trend from Q1 2023 to Q1 2024. The ratio has declined from 1.40 in Q1 2023 to 0.99 in Q1 2024. This indicates that the company has reduced its reliance on debt funding compared to equity financing over this period.
The ratio peaked at 1.61 in Q4 2022, after which there was a consistent decrease in each subsequent quarter until Q1 2024. This improvement in the debt-to-equity ratio suggests that Cabot Corp. may have taken steps to pay down debt, strengthen its balance sheet, or increase its equity base.
Overall, the decreasing trend in Cabot Corp.'s debt-to-equity ratio indicates a positive shift towards a more balanced capital structure and reduced financial risk. Further analysis of the company's financial performance and capital management strategies would provide a more comprehensive understanding of its debt and equity dynamics.
Peer comparison
Dec 31, 2023