Ashland Global Holdings Inc (ASH)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,113,000 | 2,191,000 | 2,391,000 | 2,111,000 | 2,016,000 |
| Property, plant and equipment | US$ in thousands | 1,303,000 | 1,373,000 | 1,338,000 | 1,427,000 | 1,485,000 |
| Fixed asset turnover | 1.62 | 1.60 | 1.79 | 1.48 | 1.36 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,113,000K ÷ $1,303,000K
= 1.62
The fixed asset turnover ratio for Ashland Global Holdings Inc has shown some fluctuations over the past five years. It measures the ability of the company to generate sales revenue relative to its investment in fixed assets.
In 2024, the fixed asset turnover ratio was 1.62, representing an increase compared to the previous year. This indicates that Ashland Global Holdings Inc was able to generate $1.62 in sales for every dollar invested in fixed assets during the fiscal year ending in September 2024.
The ratio was relatively stable in 2023 at 1.60, but showed a significant improvement in 2022 at 1.79. This indicates that the company became more efficient in utilizing its fixed assets to generate sales revenue during that period.
In 2021 and 2020, the fixed asset turnover ratios were 1.48 and 1.36 respectively, showing a slight decline in efficiency in utilizing fixed assets to generate sales revenue in those years.
Overall, the trend in the fixed asset turnover ratio for Ashland Global Holdings Inc suggests varying levels of efficiency in utilizing its fixed assets to generate revenue over the past five years. It would be important for the company to continue monitoring and optimizing its asset utilization to improve operating performance and profitability.
Peer comparison
Sep 30, 2024