Cabot Corporation (CBT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 572,000 | 563,000 | 542,000 | 517,000 | 507,000 | 511,000 | 525,000 | 552,000 | 367,000 | 297,000 | 264,000 | 232,000 | 422,000 | 273,000 | 147,000 | 48,000 | 6,000 | 160,000 | 234,000 | 268,000 |
| Interest expense (ttm) | US$ in thousands | 81,000 | 83,000 | 88,000 | 90,000 | 90,000 | 87,000 | 78,000 | 66,000 | 56,000 | 50,000 | 47,000 | 49,000 | 49,000 | 49,000 | 50,000 | 51,000 | 53,000 | 57,000 | 58,000 | 58,000 |
| Interest coverage | 7.06 | 6.78 | 6.16 | 5.74 | 5.63 | 5.87 | 6.73 | 8.36 | 6.55 | 5.94 | 5.62 | 4.73 | 8.61 | 5.57 | 2.94 | 0.94 | 0.11 | 2.81 | 4.03 | 4.62 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $572,000K ÷ $81,000K
= 7.06
Cabot Corporation's interest coverage ratio has shown fluctuations over the various quarters. The interest coverage ratio indicates the company's ability to meet its interest obligations from its earnings before interest and taxes (EBIT). A higher ratio is generally seen as more favorable, indicating a stronger ability to cover interest payments.
From the data provided, we can observe that the interest coverage ratio for Cabot Corporation has ranged from as low as 0.11 to as high as 8.61 over the past few quarters. The ratio reached its lowest point in the fourth quarter of 2020 and has since shown a mixed trend.
In recent quarters, the interest coverage ratio has generally been above 5, reflecting a more comfortable position in terms of meeting interest expenses. The increase in the ratio in the most recent quarter suggests an improvement in the company's ability to cover interest payments with its operating income.
It would be important to further analyze the factors contributing to these fluctuations in Cabot Corporation's interest coverage ratio to assess the sustainability of this trend and the overall financial health of the company.
Peer comparison
Sep 30, 2024