Ashland Global Holdings Inc (ASH)
Payables turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,495,000 | 1,536,000 | 1,546,000 | 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 |
| Payables | US$ in thousands | 214,000 | 198,000 | 207,000 | 202,000 | 210,000 | 210,000 | 246,000 | 246,000 | 265,000 | 241,000 | 248,000 | 236,000 | 236,000 | 236,000 | 217,000 | 217,000 | 211,000 | 225,000 | 255,000 | 234,000 |
| Payables turnover | 6.99 | 7.76 | 7.47 | 7.61 | 7.25 | 7.41 | 6.47 | 6.38 | 5.89 | 6.39 | 6.07 | 6.23 | 6.11 | 5.45 | 5.96 | 6.26 | 6.72 | 5.96 | 5.48 | 6.21 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,495,000K ÷ $214,000K
= 6.99
The payables turnover ratio for Ashland Global Holdings Inc has shown some fluctuations over the past few quarters, ranging from a low of 5.45 to a high of 7.76. The ratio indicates how efficiently the company is managing its accounts payable by measuring how many times during a period the company pays off its suppliers.
In general, a higher payables turnover ratio is favorable as it suggests that the company is able to pay its suppliers more frequently, which could indicate good liquidity and strong supplier relationships.
The downward trend from the recent peak of 7.76 to the current 6.99 may indicate a slight weakening in the company's ability to manage its payables efficiently. However, it is important to note that the ratio still remains relatively high, indicating that Ashland Global Holdings Inc is still managing its payables effectively overall.
Further analysis and comparison with industry benchmarks may provide more insight into the company's payables management performance and its implications for its financial health.
Peer comparison
Sep 30, 2024