Ashland Global Holdings Inc (ASH)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,191,000 | 2,391,000 | 2,111,000 | 2,016,000 | 2,148,000 |
| Receivables | US$ in thousands | 338,000 | 402,000 | 369,000 | 471,000 | 481,000 |
| Receivables turnover | 6.48 | 5.95 | 5.72 | 4.28 | 4.47 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,191,000K ÷ $338,000K
= 6.48
The receivables turnover ratio for Ashland Inc has been steadily increasing over the past five years, with a value of 6.48 in 2023 compared to 5.95, 5.72, 4.94, and 5.18 in the previous years. This indicates that the company's efficiency in collecting receivables has improved, as the higher turnover ratio suggests a faster conversion of receivables into cash. It can be inferred that Ashland has been more effective in managing its credit and collection processes, which is a positive sign of liquidity and effective working capital management. Overall, the increasing trend in receivables turnover ratio reflects a better control and utilization of the company's accounts receivables.
Peer comparison
Sep 30, 2023