Ashland Global Holdings Inc (ASH)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 2.74 2.89 2.81 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
Receivables turnover 8.70 9.42 8.12 11.03 6.48 6.68 6.09 6.85 5.95 4.82 5.53 6.34 5.72 4.74 4.14 4.77 4.28 4.35 4.11 4.77
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
Working capital turnover 3.00 2.29 2.17 2.25 2.09 2.11 2.07 1.91 1.97 1.86 1.85 2.61 2.70 2.87 2.18 2.45 2.75 2.70 3.04 3.21

Ashland Global Holdings Inc's activity ratios provide insights into how effectively the company is managing its assets and liabilities to generate sales revenue.

1. Inventory Turnover: The company's inventory turnover has fluctuated over the periods, ranging from 2.17 to 3.05. In general, a higher inventory turnover indicates that Ashland Global is efficiently selling its inventory, with the latest turnover at 2.74 suggesting a moderate conversion of inventory into sales.

2. Receivables Turnover: Ashland Global's receivables turnover ratios have also varied significantly, ranging from 4.11 to 11.03. A higher receivables turnover implies that the company is collecting its receivables quickly, with the latest turnover of 8.70 indicating a relatively strong collection efficiency.

3. Payables Turnover: The payables turnover ratios have been relatively stable, fluctuating between 5.45 and 7.76. A higher payables turnover suggests that Ashland Global is taking longer to pay its suppliers, which can sometimes indicate favorable credit terms or liquidity management.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently Ashland Global is using its working capital to generate revenue. The company's working capital turnover has ranged from 1.85 to 3.21, with higher ratios indicating a more efficient utilization of working capital for generating sales.

Overall, Ashland Global appears to be managing its assets and liabilities effectively to drive sales growth, as evidenced by the relatively strong turnover ratios across inventory, receivables, payables, and working capital over the periods analyzed.

Average number of days

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
Days of inventory on hand (DOH) days 133.06 126.42 129.85 139.54 150.03 167.02 167.37 168.32 147.08 144.34 138.87 131.51 119.81 146.74 144.42 144.33 130.34 167.94 159.64 159.01
Days of sales outstanding (DSO) days 41.96 38.77 44.95 33.10 56.31 54.61 59.97 53.27 61.34 75.76 66.02 57.59 63.80 77.05 88.19 76.52 85.28 83.83 88.75 76.47
Number of days of payables days 52.25 47.05 48.87 47.94 50.33 49.26 56.40 57.19 61.96 57.12 60.11 58.56 59.78 66.98 61.21 58.32 54.35 61.24 66.62 58.78

Ashland Global Holdings Inc's activity ratios indicate the efficiency with which the company manages its operations.

1. Days of Inventory on Hand (DOH): Ashland Global Holdings Inc's average days of inventory on hand has been fluctuating over the periods, ranging from 119.81 days to 167.37 days. A decrease in this ratio indicates efficient inventory management, while an increase may suggest overstocking or slow sales.

2. Days of Sales Outstanding (DSO): The company's days of sales outstanding have varied significantly, ranging from 33.10 days to 88.75 days. A lower DSO implies faster collection of receivables, while a higher DSO may signal potential cash flow challenges or credit management issues.

3. Number of Days of Payables: Ashland Global Holdings Inc's payables period has shown some variability, with the number of days ranging from 47.05 days to 66.98 days. A longer payables period can indicate better cash flow management, but it may also suggest strained relationships with suppliers if extended too far.

Overall, monitoring these activity ratios is crucial for assessing Ashland Global Holdings Inc's operational efficiency, inventory management practices, collection of receivables, and payment of obligations to suppliers. Trends in these ratios over time can provide insights into the company's operational performance and potential areas for improvement.

Long-term

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
Fixed asset turnover 1.62 1.63 1.58 1.56 1.60 1.70 1.78 1.79 1.79 1.74 1.63 1.54 1.48 1.19 1.21 1.25 1.36 1.27 1.31 1.34
Total asset turnover 0.37 0.37 0.35 0.36 0.37 0.38 0.39 0.38 0.38 0.37 0.33 0.33 0.32 0.27 0.28 0.29 0.29 0.28 0.29 0.29

Ashland Global Holdings Inc's long-term activity ratios indicate its efficiency in utilizing assets to generate sales revenue. The fixed asset turnover ratio has been relatively stable over the periods, ranging between 1.48 and 1.79. This suggests that the company is effectively using its fixed assets to generate sales, with a moderate improvement trend observed recently.

On the other hand, the total asset turnover ratio has also remained fairly consistent, ranging from 0.27 to 0.39. This ratio indicates that Ashland Global Holdings Inc's efficiency in generating sales from all its assets has been somewhat lower compared to generating sales from fixed assets alone. However, there has been a slight improvement in the total asset turnover ratio in the most recent periods.

Overall, these activity ratios suggest that Ashland Global Holdings Inc is efficiently utilizing its assets to generate sales revenue, with a positive trend in recent periods. It is important for the company to continue monitoring and managing its asset efficiency to maintain and potentially further improve its overall financial performance.