Ashland Global Holdings Inc (ASH)
Fixed asset turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,148,000 | 2,551,000 | 2,578,000 |
| Property, plant and equipment | US$ in thousands | 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 | 1,577,000 | 1,580,000 | 1,587,000 |
| Fixed asset turnover | 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 | 1.36 | 1.61 | 1.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,139,000K ÷ $1,367,000K
= 1.56
Fixed asset turnover measures the efficiency with which a company generates sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
Looking at the trend for Ashland Inc, we can see a fluctuating pattern in the fixed asset turnover ratio over the past few quarters. In the most recent quarter, the ratio decreased to 1.56 from 1.60 in the previous quarter. However, it remains relatively stable compared to the earlier quarters of the year.
The declining trend in the fixed asset turnover ratio may indicate that Ashland Inc's sales generated from fixed assets are decreasing or that the company's investment in fixed assets is growing at a faster rate than the sales. It is important for the company to monitor this ratio closely and evaluate the efficiency of its fixed asset utilization to ensure optimal resource allocation and profitability.
Peer comparison
Dec 31, 2023