Ashland Global Holdings Inc (ASH)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,114,000 | 2,109,000 | 2,111,000 | 2,139,000 | 2,191,000 | 2,306,000 | 2,404,000 | 2,405,000 | 2,392,000 | 2,351,000 | 2,250,000 | 2,155,000 | 2,111,000 | 1,819,000 | 1,850,000 | 1,951,000 | 2,016,000 | 1,981,000 | 2,048,000 | 2,105,000 |
| Property, plant and equipment | US$ in thousands | 1,303,000 | 1,294,000 | 1,340,000 | 1,367,000 | 1,373,000 | 1,354,000 | 1,351,000 | 1,346,000 | 1,338,000 | 1,352,000 | 1,380,000 | 1,401,000 | 1,427,000 | 1,524,000 | 1,532,000 | 1,562,000 | 1,485,000 | 1,554,000 | 1,564,000 | 1,575,000 |
| Fixed asset turnover | 1.62 | 1.63 | 1.58 | 1.56 | 1.60 | 1.70 | 1.78 | 1.79 | 1.79 | 1.74 | 1.63 | 1.54 | 1.48 | 1.19 | 1.21 | 1.25 | 1.36 | 1.27 | 1.31 | 1.34 |
September 30, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,114,000K ÷ $1,303,000K
= 1.62
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio indicates that the company is generating more revenue per dollar of investment in fixed assets.
Analyzing Ashland Global Holdings Inc's fixed asset turnover over the past 20 quarters shows some fluctuations but generally stable performance. The ratio ranged from a low of 1.19 in Q1 2021 to a high of 1.79 in Q4 2022 and Q1 2023, with an average around 1.5 to 1.7.
The trend indicates that Ashland has been effectively using its fixed assets to generate revenue, although there was a slight decline in recent quarters from the peak levels seen in Q4 2022 and Q1 2023. It's important to note that the changes in fixed asset turnover can be influenced by various factors such as changes in sales, asset base, or operational efficiency.
Overall, Ashland Global Holdings Inc's fixed asset turnover ratio suggests efficient utilization of its fixed assets in generating revenue, but it would be beneficial for the company to closely monitor and potentially improve this ratio to enhance operational efficiency and profitability.
Peer comparison
Sep 30, 2024