Ashland Global Holdings Inc (ASH)
Payables 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 |
| Payables | US$ in thousands | 214,000 | 210,000 | 265,000 | 236,000 | 211,000 |
| Payables turnover | 6.99 | 7.25 | 5.89 | 6.11 | 6.72 |
September 30, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,495,000K ÷ $214,000K
= 6.99
The payables turnover ratio for Ashland Global Holdings Inc has fluctuated over the last five years. The ratio indicates how efficiently the company is managing its accounts payable by measuring the number of times the company pays off its suppliers within a specific period.
In 2024, the payables turnover decreased to 6.99 from 7.25 in 2023, suggesting that the company took slightly longer to pay off its suppliers in 2024. This could be a result of changes in the company's payment policies, cash flow constraints, or negotiations with suppliers.
Comparing the 2024 ratio to 2022 and 2021, we observe an increase in efficiency as the ratio is higher. However, it has not reached the peak level seen in 2023. This indicates that the company's management of payables improved from 2022 to 2023 but regressed slightly in 2024.
Overall, Ashland Global Holdings Inc's payables turnover ratio has shown variability in recent years, but the company generally maintains a relatively high turnover, indicating efficient management of its accounts payable. It is essential for the company to analyze the reasons behind the fluctuations in this ratio to optimize cash flow management and maintain good relationships with suppliers.
Peer comparison
Sep 30, 2024