Ashland Global Holdings Inc (ASH)
Total asset 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 |
| Total assets | US$ in thousands | 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 | 7,251,000 | 7,925,000 | 7,998,000 |
| 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 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,139,000K ÷ $5,866,000K
= 0.36
The total asset turnover ratio measures the efficiency with which a company utilizes its total assets to generate sales. A higher total asset turnover indicates that the company is utilizing its assets more efficiently to generate sales.
Based on the data provided, Ashland Inc's total asset turnover has been fluctuating over the past eight quarters. The ratio ranged from a low of 0.31 in March 2022 to a high of 0.39 in March 2023. This indicates some variability in the company's ability to generate sales relative to its total assets.
The increasing trend from March 2022 to March 2023 shows an improvement in the company's efficiency in utilizing its assets to generate sales. However, the decrease in the ratio in the most recent quarter (December 2023) may be a cause for concern as it suggests a potential dip in asset utilization efficiency.
It is important for Ashland Inc to closely monitor and analyze the factors contributing to these fluctuations in total asset turnover to ensure optimal utilization of its assets in generating sales and to maintain long-term profitability.
Peer comparison
Dec 31, 2023