Ashland Global Holdings Inc (ASH)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,191,000 | 2,391,000 | 2,111,000 | 2,016,000 | 2,148,000 |
| Property, plant and equipment | US$ in thousands | 1,373,000 | 1,338,000 | 1,427,000 | 1,485,000 | 1,577,000 |
| Fixed asset turnover | 1.60 | 1.79 | 1.48 | 1.36 | 1.36 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,191,000K ÷ $1,373,000K
= 1.60
The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. A higher ratio indicates better efficiency in utilizing fixed assets to generate sales.
Based on the data provided for Ashland Inc:
- The fixed asset turnover ratio decreased from 1.79 in 2022 to 1.60 in 2023, indicating that the company's efficiency in utilizing its fixed assets to generate revenue decreased during this period.
- The ratio of 1.60 in 2023 suggests that for every dollar of fixed assets, Ashland Inc generated $1.60 in sales, which is lower than the $1.79 in 2022.
- Comparing to earlier years, the ratio in 2023 is relatively lower than in 2019 and 2020, but slightly higher than 2021.
Overall, the trend indicates a decrease in the efficiency of using fixed assets to generate sales. It may be important for Ashland Inc to assess and improve its fixed asset utilization to enhance overall operational efficiency in the future.
Peer comparison
Sep 30, 2023