Ashland Global Holdings Inc (ASH)
Working capital 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 |
| Total current assets | US$ in thousands | 1,195,000 | 1,506,000 | 1,768,000 | 1,717,000 | 1,547,000 |
| Total current liabilities | US$ in thousands | 490,000 | 456,000 | 553,000 | 934,000 | 813,000 |
| Working capital turnover | 3.00 | 2.09 | 1.97 | 2.70 | 2.75 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,113,000K ÷ ($1,195,000K – $490,000K)
= 3.00
The working capital turnover ratio for Ashland Global Holdings Inc has shown fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio suggests better efficiency in managing working capital.
In 2024, the working capital turnover ratio improved significantly to 3.00, indicating that the company generated $3.00 in revenue for every dollar of working capital invested. This suggests an improved efficiency in the management of current assets and liabilities.
In 2023 and 2022, the ratio was 2.09 and 1.97, respectively, which were lower compared to 2024. This indicates a decrease in efficiency in utilizing working capital to generate revenue during those years.
In 2021 and 2020, the ratio rebounded to 2.70 and 2.75, respectively, reflecting improved efficiency compared to the preceding years.
Overall, the fluctuations in the working capital turnover ratio suggest varying levels of efficiency in managing working capital over the past five years. It would be important for the company to further analyze the underlying factors influencing these fluctuations to ensure optimal utilization of working capital resources.
Peer comparison
Sep 30, 2024