Ashland Global Holdings Inc (ASH)
Total asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,114,000 | 2,109,000 | 2,111,000 | 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 |
| Total assets | US$ in thousands | 5,645,000 | 5,747,000 | 5,948,000 | 5,866,000 | 5,939,000 | 6,029,000 | 6,183,000 | 6,259,000 | 6,213,000 | 6,412,000 | 6,780,000 | 6,549,000 | 6,612,000 | 6,766,000 | 6,664,000 | 6,742,000 | 6,877,000 | 6,986,000 | 6,968,000 | 7,326,000 |
| 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 |
September 30, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,114,000K ÷ $5,645,000K
= 0.37
The total asset turnover ratio measures a company's efficiency in generating revenue from its total assets. Ashland Global Holdings Inc's total asset turnover has been relatively stable over the past few quarters, ranging between 0.32 and 0.39.
A total asset turnover ratio of less than 1 indicates that the company is not efficiently using its assets to generate revenue. In Ashland Global Holdings Inc's case, the ratios have consistently been below 0.5, suggesting that the company may have inefficiencies in utilizing its assets to generate sales.
It is essential for the company to analyze the reasons behind the low total asset turnover ratio and identify strategies to improve asset utilization to enhance revenue generation. This could involve optimizing the management of inventory, increasing sales, or evaluating asset quality and productivity.
Peer comparison
Sep 30, 2024