Ashland Global Holdings Inc (ASH)
Inventory turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,495,000 | 1,523,000 | 1,561,000 | 1,441,000 | 1,417,000 |
| Inventory | US$ in thousands | 545,000 | 626,000 | 629,000 | 473,000 | 506,000 |
| Inventory turnover | 2.74 | 2.43 | 2.48 | 3.05 | 2.80 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,495,000K ÷ $545,000K
= 2.74
The inventory turnover ratio for Ashland Global Holdings Inc has varied over the past five years, ranging from 2.43 to 3.05. The ratio indicates that the company is able to convert its inventory into sales within a specific period efficiently. A higher inventory turnover ratio typically signifies that the company is managing its inventory well and is selling goods effectively. Conversely, a lower ratio may indicate slower inventory turnover, potential overstocking, or inefficiencies in sales.
In the most recent year, as of September 30, 2024, the inventory turnover ratio was 2.74, which is higher than the previous year's ratio of 2.43. This improvement suggests that the company's inventory management may have become more efficient in converting inventory into sales. However, it is essential to compare this ratio with industry benchmarks and historical trends to gain a more comprehensive understanding of Ashland Global Holdings Inc's performance in managing its inventory effectively.
Peer comparison
Sep 30, 2024