Ashland Global Holdings Inc (ASH)
Receivables turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,113,000 | 2,191,000 | 2,391,000 | 2,111,000 | 2,016,000 |
| Receivables | US$ in thousands | 243,000 | 338,000 | 402,000 | 369,000 | 471,000 |
| Receivables turnover | 8.70 | 6.48 | 5.95 | 5.72 | 4.28 |
September 30, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,113,000K ÷ $243,000K
= 8.70
The receivables turnover ratio for Ashland Global Holdings Inc has shown a consistent increasing trend over the past five years from 4.28 in 2020 to 8.70 in 2024. This indicates that the company's efficiency in collecting outstanding receivables has been improving steadily.
A higher receivables turnover ratio suggests that Ashland Global Holdings Inc is able to collect its accounts receivable more quickly, which is generally a positive sign as it indicates a shorter cash conversion cycle and improved liquidity. This can also indicate effective credit policies and strong relationships with customers.
Overall, the increasing trend in receivables turnover for Ashland Global Holdings Inc demonstrates the company's effective management of its accounts receivable and its ability to convert credit sales into cash in a timely manner.
Peer comparison
Sep 30, 2024