Ashland Global Holdings Inc (ASH)
Working capital 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 current assets | US$ in thousands | 1,365,000 | 1,506,000 | 1,526,000 | 1,631,000 | 1,724,000 | 1,768,000 | 1,817,000 | 2,025,000 | 1,734,000 | 1,717,000 | 1,235,000 | 1,418,000 | 1,381,000 | 1,547,000 | 1,670,000 | 1,645,000 | 1,344,000 | 1,433,000 | 2,037,000 | 2,087,000 |
| Total current liabilities | US$ in thousands | 414,000 | 456,000 | 432,000 | 472,000 | 464,000 | 553,000 | 550,000 | 810,000 | 908,000 | 934,000 | 602,000 | 569,000 | 585,000 | 813,000 | 937,000 | 972,000 | 688,000 | 757,000 | 1,007,000 | 920,000 |
| Working capital turnover | 2.25 | 2.09 | 2.11 | 2.07 | 1.91 | 1.97 | 1.86 | 1.85 | 2.61 | 2.70 | 2.87 | 2.18 | 2.45 | 2.75 | 2.70 | 3.04 | 3.21 | 3.18 | 2.48 | 2.21 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,139,000K ÷ ($1,365,000K – $414,000K)
= 2.25
The working capital turnover ratio measures the efficiency with which a company utilizes its working capital to generate sales. A higher turnover indicates a more efficient use of working capital.
Based on the data provided, the working capital turnover for Ashland Inc has been fluctuating over the past eight quarters. It increased from 1.71 in March 2022 to 2.11 in June 2023, indicating improved efficiency in utilizing working capital to generate sales. However, the ratio slightly decreased to 2.07 in March 2023 before rising again to 2.09 in September 2023.
Overall, the working capital turnover has shown an increasing trend from 1.64 in June 2022 to 2.25 in December 2023. This suggests that Ashland Inc has been more effective in generating sales using its working capital in recent quarters. It is important for the company to sustain this improvement in efficiency to effectively manage its working capital for future growth and profitability.
Peer comparison
Dec 31, 2023