Ashland Global Holdings Inc (ASH)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 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 4.47 5.03 4.94
Payables turnover 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 4.78 6.41 6.31
Working capital turnover 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 3.18 2.48 2.21

Based on the provided data, the activity ratios of Ashland Inc for the period from December 2022 to December 2023 are as follows:

Inventory Turnover:
The inventory turnover ratio measures the efficiency of a company's inventory management. Ashland Inc's inventory turnover has shown some fluctuations over the period, ranging from 2.17 to 2.62. A higher inventory turnover indicates that the company is selling its inventory more quickly, which is generally seen as a positive sign.

Receivables Turnover:
The receivables turnover ratio reflects how efficiently a company is collecting payments from its customers. Ashland Inc's receivables turnover has varied significantly during the period, with a low of 4.27 in June 2022 and a high of 11.03 in December 2023. The increase in the receivables turnover ratio over time suggests an improvement in the company's collection process.

Payables Turnover:
Unfortunately, there is no data available for payables turnover, making it impossible to analyze the company's efficiency in managing its payables during the given period.

Working Capital Turnover:
The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales. Ashland Inc's working capital turnover ratio has ranged from 1.64 to 2.25, indicating some variability in the company's ability to generate sales relative to its working capital over the period.

In conclusion, while the inventory turnover and working capital turnover ratios show some level of stability and improvement, the receivables turnover ratio seems to have exhibited substantial variability. The absence of data for payables turnover hinders a comprehensive assessment of the company's overall efficiency in managing its payable obligations.

Average number of days

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
Days of inventory on hand (DOH) days 139.54 150.03 167.02 167.37 168.32 147.08 144.34 138.87 131.51 119.81 146.74 144.42 144.33 130.34 167.94 159.64 159.01 145.56 123.18 123.66
Days of sales outstanding (DSO) days 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 81.73 72.54 73.91
Number of days of payables days 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 76.32 56.93 57.81

The Days of Inventory on Hand (DOH) measures how many days it takes for a company to sell its inventory. A lower number is generally preferred, as it indicates that the company is efficiently managing its inventory. Ashland Inc's DOH has fluctuated over the past two years, with a slight increase from 147.08 days in September 2022 to 168.32 days in December 2022, followed by a decrease to 139.54 days in December 2023. This variation could suggest changes in inventory management or sales patterns.

The Days of Sales Outstanding (DSO) reflects the average number of days it takes for a company to collect revenue after a sale is made. A lower DSO is typically more favorable as it indicates quicker collection of receivables. Ashland Inc's DSO has also varied, with a noticeable improvement from 85.47 days in June 2022 to 33.10 days in December 2023. This decrease suggests an improvement in the company's collections process.

The information on the number of days of payables is not available for analysis in this data set, but it would typically measure how long it takes for a company to pay its suppliers.

In summary, while Ashland Inc's DOH has shown some volatility, its DSO has demonstrated improvement, indicating more efficient collection of receivables. This suggests positive developments in the company's working capital management.

Long-term

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
Fixed asset turnover 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 1.36 1.61 1.62
Total asset turnover 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 0.30 0.32 0.32

The fixed asset turnover ratio for Ashland Inc has been relatively stable, hovering around 1.50 to 1.80 over the past eight quarters. This indicates that the company is generating between $1.50 to $1.80 in revenue for every $1.00 invested in fixed assets. The slight fluctuations in the ratio suggest that the company's ability to utilize its fixed assets efficiently has remained consistent.

On the other hand, the total asset turnover ratio has also shown stability, with values ranging from 0.31 to 0.39 over the same period. This implies that for every dollar of total assets, the company has been generating revenue within the range of $0.31 to $0.39. Overall, both ratios suggest that Ashland Inc has maintained steady turnover of its assets, and these trends may provide insight into the company's long-term operational efficiency.