Cabot Corporation (CBT)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 286,000 | 316,000 | 338,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 59,000 | 56,000 | 56,000 |
| Interest coverage | 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 | 4.85 | 5.64 | 6.04 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $517,000K ÷ $90,000K
= 5.74
Cabot Corp.'s interest coverage ratios have been relatively stable and healthy over the past eight quarters, ranging from 9.05 to 12.93. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates a strong ability to cover interest expenses with operating income.
In this case, Cabot Corp. has consistently maintained interest coverage ratios above 9, which is generally considered a good sign by investors and creditors. The highest ratio of 12.93 was recorded in Q4 2022, indicating a robust ability to cover interest expenses.
Overall, the trend in Cabot Corp.'s interest coverage ratios suggests a financially stable company with a strong ability to meet its interest obligations using its operating income.
Peer comparison
Dec 31, 2023