Ashland Global Holdings Inc (ASH)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,538,000 | 1,523,000 | 1,556,000 | 1,592,000 | 1,570,000 | 1,561,000 | 1,540,000 | 1,506,000 | 1,471,000 | 1,441,000 | 1,286,000 | 1,294,000 | 1,358,000 | 1,417,000 | 1,341,000 | 1,397,000 | 1,453,000 | 1,497,000 | 1,763,000 | 1,768,000 |
| Inventory | US$ in thousands | 588,000 | 626,000 | 712,000 | 730,000 | 724,000 | 629,000 | 609,000 | 573,000 | 530,000 | 473,000 | 517,000 | 512,000 | 537,000 | 506,000 | 617,000 | 611,000 | 633,000 | 597,000 | 595,000 | 599,000 |
| Inventory turnover | 2.62 | 2.43 | 2.19 | 2.18 | 2.17 | 2.48 | 2.53 | 2.63 | 2.78 | 3.05 | 2.49 | 2.53 | 2.53 | 2.80 | 2.17 | 2.29 | 2.30 | 2.51 | 2.96 | 2.95 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,538,000K ÷ $588,000K
= 2.62
The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times it sells and replaces its inventory over a specific period. Ashland Inc's inventory turnover has fluctuated over the past eight quarters, ranging from a low of 2.17 to a high of 2.62. Generally, a higher inventory turnover indicates more efficient inventory management, as the company is selling and restocking its inventory more frequently.
The gradual decrease from 2.48 in September 2022 to 2.18 in March 2023, before a slight increase to 2.19 in June 2023, may indicate a potential slowdown in inventory management efficiency. However, the subsequent improvement to 2.43 in September 2023 suggests a positive trend. Overall, a consistent analysis of inventory levels and the reasons behind the changes in inventory turnover may provide a more comprehensive understanding of Ashland Inc's inventory management efficiency.
Peer comparison
Dec 31, 2023
Dec 31, 2023