Cabot Corporation (CBT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,695,000 | 3,604,000 | 3,387,000 | 3,519,000 | 3,535,000 | 3,525,000 | 3,568,000 | 3,524,000 | 3,315,000 | 3,306,000 | 3,225,000 | 3,047,000 | 2,980,000 | 2,781,000 | 3,019,000 | 3,097,000 | 3,151,000 | 3,004,000 | 3,119,000 | 3,272,000 |
| 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 |
| Financial leverage ratio | 2.78 | 2.85 | 2.99 | 3.20 | 3.50 | 3.93 | 3.99 | 3.84 | 4.18 | 3.49 | 3.38 | 3.76 | 3.62 | 4.02 | 3.25 | 3.35 | 3.07 | 3.01 | 2.86 | 2.96 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,695,000K ÷ $1,329,000K
= 2.78
The financial leverage ratio of Cabot Corp. has been fluctuating over the past eight quarters. The trend shows a general increase in the ratio from Q1 2023 to Q2 2023, peaking at 3.50 in Q1 2023. Subsequently, there was a slight decrease in Q2 2023 before a significant drop in Q3 2023 and a further decrease in Q4 2023. The ratio continued to decline in Q1 2024 to reach 2.78, indicating a decreasing trend in the company's financial leverage.
A financial leverage ratio above 1 indicates that the company has more debt in its capital structure compared to equity. Throughout the observed quarters, Cabot Corp. maintained a financial leverage ratio well above 1, indicating a reliance on debt financing.
The decreasing trend in the financial leverage ratio suggests that Cabot Corp. may be reducing its debt levels relative to equity, which could lead to a more stable financial position in the long term. However, it is essential for investors and analysts to closely monitor changes in the financial leverage ratio to assess the company's risk profile and financial health accurately.
Peer comparison
Dec 31, 2023