Cabot Corporation (CBT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,736,000 | 3,580,000 | 3,596,000 | 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 |
| 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 |
| Financial leverage ratio | 2.62 | 2.66 | 2.63 | 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 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,736,000K ÷ $1,425,000K
= 2.62
The financial leverage ratio of Cabot Corporation has been fluctuating over the past several quarters. The trend shows an increase in leverage from 2.62 in September 2020 to 4.18 in December 2021. This suggests that the company's reliance on debt to finance its operations and investments has been on the rise. Subsequently, the ratio decreased to 2.62 in September 2024, indicating a reduction in leverage.
It is important to note that a higher financial leverage ratio can indicate greater risk for the company, as increased debt levels can result in higher interest payments and financial obligations. On the other hand, a lower ratio suggests a more conservative capital structure with less reliance on debt financing.
Overall, the trend in Cabot Corporation's financial leverage ratio highlights the fluctuations in the company's capital structure and its management of debt levels over the past few quarters.
Peer comparison
Sep 30, 2024