Ashland Global Holdings Inc (ASH)
Working capital 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 current assets | US$ in thousands | 1,195,000 | 1,385,000 | 1,427,000 | 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 |
| Total current liabilities | US$ in thousands | 490,000 | 464,000 | 453,000 | 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 |
| Working capital turnover | 3.00 | 2.29 | 2.17 | 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 |
September 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,114,000K ÷ ($1,195,000K – $490,000K)
= 3.00
The working capital turnover for Ashland Global Holdings Inc has shown some fluctuations over the past several quarters. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in managing working capital.
In the most recent quarter ended September 30, 2024, the working capital turnover was 3.00, which is higher than the previous quarter and represents an improvement in efficiency. The company was able to generate $3.00 in sales for every $1.00 of working capital invested.
Looking at the trend over the past few quarters, we see some variability in the working capital turnover ratio, with fluctuations ranging from 1.85 to 3.21. It is important to note that a higher working capital turnover ratio is generally preferred as it indicates that the company is effectively managing its working capital to support sales growth.
Overall, despite some fluctuations, the working capital turnover for Ashland Global Holdings Inc appears to show a generally positive trend, with the most recent quarter reflecting an improvement in efficiency. Continued monitoring of this ratio will be important to assess the company's ability to efficiently utilize its working capital in generating sales revenue.
Peer comparison
Sep 30, 2024