Ashland Global Holdings Inc (ASH)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,523,000 | 1,561,000 | 1,441,000 | 1,417,000 | 1,497,000 |
| Inventory | US$ in thousands | 626,000 | 629,000 | 473,000 | 506,000 | 597,000 |
| Inventory turnover | 2.43 | 2.48 | 3.05 | 2.80 | 2.51 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,523,000K ÷ $626,000K
= 2.43
The inventory turnover of Ashland Inc has shown a decreasing trend over the past five years. In 2023, the inventory turnover ratio decreased to 2.43 from 2.48 in 2022. This decline indicates that Ashland Inc is taking longer to sell its inventory compared to the previous year. Moreover, the inventory turnover has declined significantly from 3.05 in 2021 to 2.43 in 2023, suggesting a potential inefficiency in managing and selling inventory. This trend raises concerns about the company's ability to efficiently manage its inventory levels and convert it into sales. Further analysis of the underlying causes of the declining inventory turnover is necessary to address any potential operational inefficiencies.
Peer comparison
Sep 30, 2023