Ashland Global Holdings Inc (ASH)
Working capital turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,191,000 | 2,391,000 | 2,111,000 | 2,016,000 | 2,148,000 |
| Total current assets | US$ in thousands | 1,506,000 | 1,768,000 | 1,717,000 | 1,547,000 | 1,433,000 |
| Total current liabilities | US$ in thousands | 456,000 | 553,000 | 934,000 | 813,000 | 757,000 |
| Working capital turnover | 2.09 | 1.97 | 2.70 | 2.75 | 3.18 |
September 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,191,000K ÷ ($1,506,000K – $456,000K)
= 2.09
The working capital turnover for Ashland Inc has exhibited a declining trend over the past five years, decreasing from 3.69 in 2019 to 2.09 in 2023. This indicates that the company's ability to efficiently use its working capital to generate sales has decreased over this period. A lower turnover ratio may suggest that the company is not effectively managing its working capital or is experiencing difficulty in generating sales from its current level of working capital. It would be prudent for the company to assess its working capital management strategies to improve the efficiency of utilizing its current assets to drive sales.
Peer comparison
Sep 30, 2023