Cabot Corporation (CBT)
Interest coverage
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 507,000 | 367,000 | 422,000 | 6,000 | 286,000 |
| Interest expense | US$ in thousands | 90,000 | 56,000 | 49,000 | 53,000 | 59,000 |
| Interest coverage | 5.63 | 6.55 | 8.61 | 0.11 | 4.85 |
September 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $507,000K ÷ $90,000K
= 5.63
The interest coverage ratio of Cabot Corp. has varied over the past five years, indicating fluctuations in the company's ability to cover its interest expenses. In 2023, the interest coverage ratio stands at 9.05, which is a decrease from the previous year but still reflects a relatively healthy ability to meet interest payments. In 2022, the ratio was notably higher at 12.93, suggesting a stronger capacity to cover interest costs. Similarly, in 2021, the interest coverage ratio was 11.15, indicating a favorable ability to address interest obligations. However, there was a dip in 2020 when the ratio dropped to 3.42, signifying a potential strain in meeting interest requirements. In 2019, the ratio was 6.72, showing an improvement from 2020 but still lower than the ratios in subsequent years. Overall, the trend in Cabot Corp.'s interest coverage ratio reveals some variability in the company's capacity to service its interest expenses, with notable peaks and troughs in different years.
Peer comparison
Sep 30, 2023