Cabot Corporation (CBT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.29 | 0.30 | 0.30 | 0.30 | 0.30 | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.20 | 0.22 | 0.22 | 0.34 | 0.36 | 0.36 | 0.39 | 0.39 | 0.38 | 0.35 |
| Debt-to-capital ratio | 0.43 | 0.45 | 0.44 | 0.45 | 0.46 | 0.49 | 0.50 | 0.52 | 0.55 | 0.55 | 0.44 | 0.47 | 0.43 | 0.53 | 0.57 | 0.57 | 0.61 | 0.56 | 0.56 | 0.52 |
| Debt-to-equity ratio | 0.76 | 0.80 | 0.80 | 0.83 | 0.87 | 0.97 | 1.00 | 1.08 | 1.21 | 1.23 | 0.77 | 0.90 | 0.76 | 1.14 | 1.34 | 1.32 | 1.58 | 1.25 | 1.29 | 1.07 |
| 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 |
Cabot Corporation's solvency ratios exhibit fluctuations over the past several quarters. The debt-to-assets ratio has remained relatively stable around 0.30, indicating that approximately 30% of the company's assets are financed by debt. The debt-to-capital and debt-to-equity ratios have shown a more pronounced upward trend, reaching peaks of 0.57 and 1.34, respectively. These ratios suggest that the company has been increasing its reliance on debt to finance its operations and investments.
The financial leverage ratio, which reflects the proportion of a company's assets that are financed by debt, has also fluctuated significantly, ranging from 2.62 to 4.18. The increasing trend in this ratio indicates a rising level of financial risk for Cabot Corporation as its debt levels relative to assets and equity have been on the rise.
Overall, the analysis of Cabot Corporation's solvency ratios highlights a trend towards higher levels of debt financing, which may warrant attention to ensure financial stability and sustainability in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Cabot Corporation's interest coverage has shown fluctuations over the analyzed periods. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
From Dec 2019 to Sep 2020, Cabot Corporation's interest coverage ratio was relatively stable, ranging between 2.81 and 4.62. However, starting from Mar 2021 to Sep 2021, there was a noticeable increase in the interest coverage ratio, peaking at 8.61 in Dec 2021. This suggests that the company had a significant increase in its ability to cover its interest expenses during this period.
Subsequently, there was a gradual decrease in the interest coverage ratio from Dec 2021 to Mar 2023, reaching a low of 4.73 in Dec 2021. This decreasing trend continued until Dec 2023 when the interest coverage ratio declined sharply to 5.74.
However, from Mar 2024 to Sep 2024, there was a slight recovery in the interest coverage ratio, stabilizing around 6.16 to 7.06. Overall, the trend in Cabot Corporation's interest coverage ratio reflects a mix of fluctuations and some periods of improved ability to cover interest expenses.