Ashland Global Holdings Inc (ASH)
Receivables turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,139,000 | 2,191,000 | 2,306,000 | 2,404,000 | 2,405,000 | 2,392,000 | 2,351,000 | 2,250,000 | 2,155,000 | 2,111,000 | 1,819,000 | 1,850,000 | 1,951,000 | 2,016,000 | 1,981,000 | 2,048,000 | 2,105,000 | 2,148,000 | 2,551,000 | 2,578,000 |
| Receivables | US$ in thousands | 194,000 | 338,000 | 345,000 | 395,000 | 351,000 | 402,000 | 488,000 | 407,000 | 340,000 | 369,000 | 384,000 | 447,000 | 409,000 | 471,000 | 455,000 | 498,000 | 441,000 | 481,000 | 507,000 | 522,000 |
| 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 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,139,000K ÷ $194,000K
= 11.03
The receivables turnover ratio measures the efficiency of a company in collecting cash from its credit sales. A higher receivables turnover ratio indicates that the company is more efficient in collecting cash from its customers.
Based on the data provided, Ashland Inc's receivables turnover ratio has fluctuated over the past eight quarters. In the most recent quarter, as of Dec 31, 2023, the receivables turnover ratio stands at 11.03, which is significantly higher than the ratios from the previous quarters.
The sharp increase in the receivables turnover ratio could suggest that Ashland Inc has improved its ability to collect cash from its credit sales, possibly indicating more effective credit management or a more efficient collection process. This may also indicate a lower level of outstanding receivables on its books, which can have a positive impact on the company's cash flow and overall liquidity.
It is important to note that analyzing receivables turnover in conjunction with other financial metrics and industry benchmarks can provide a more comprehensive understanding of the company's overall financial performance and efficiency in managing its receivables.
Peer comparison
Dec 31, 2023