Cabot (FRA:CBT) ROCE % : 22.77% (As of Dec. 2024)

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What is Cabot ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cabot's annualized ROCE % for the quarter that ended in Dec. 2024 was 22.77%.

Cabot ROCE % Historical Data

The historical data trend for Cabot's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Cabot ROCE % Chart

Cabot Annual Data

Trend

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

ROCE %

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0.83

20.64

18.46

20.07

20.83

Cabot Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROCE %	Get a 7-Day Free Trial															16.26	22.74	24.79	20.82	22.77

Cabot ROCE % Calculation

Cabot's annualized ROCE % for the fiscal year that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2024 )		(A: Sep. 2023 )		(A: Sep. 2024 )
	=	549.61	/	( ( (3376.948 - 770.214)	+	(3366.136 - 695.572) )	/ 2 )
	=	549.61	/	( (2606.734	+	2670.564)	/ 2 )
	=	549.61	/	2638.649
	=	20.83 %

Cabot's ROCE % of for the quarter that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2024 )		(Q: Sep. 2024 )		(Q: Dec. 2024 )
	=	618.84	/	( ( (3366.136 - 695.572)	+	(3478.11 - 713.385) )	/ 2 )
	=	618.84	/	( ( 2670.564	+	2764.725 )	/ 2 )
	=	618.84	/	2717.6445
	=	22.77 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2024) EBIT data.

Cabot (FRA:CBT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Cabot ROCE % Related Terms

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Cabot Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Cabot Corp (FRA:CBT) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CBT:USA

Address

Two Seaport Lane, Suite 1400, Boston, MA, USA, 02210

Website

https://www.cabotcorp.com

Cabot Corp manufactures and sells a variety of chemicals, materials, and chemical-based products. The company organizes itself into the following operating segments based on the product type; the Reinforcement Materials segment which generates maximum revenue provides reinforcing carbon products used in tires, and industrial products such as hoses, belts, extruded profiles, and molded goods; and the Performance Chemicals segment aggregates the specialty carbons, specialty compounds, fumed metal oxides, battery materials, inkjet colorants, and aerogel product lines. Geographically, the company derives maximum revenue from its customers in Europe, the Middle East, and Africa and the rest from the Americas and Asia Pacific region.