Ashland Global Holdings Inc (ASH)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 133.06 | 150.03 | 147.08 | 119.81 | 130.34 |
| Days of sales outstanding (DSO) | days | 41.98 | 56.31 | 61.37 | 63.80 | 85.28 |
| Number of days of payables | days | 52.25 | 50.33 | 61.96 | 59.78 | 54.35 |
| Cash conversion cycle | days | 122.79 | 156.01 | 146.48 | 123.83 | 161.26 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 133.06 + 41.98 – 52.25
= 122.79
The cash conversion cycle measures the time it takes for a company to convert its investment in inventory into cash from sales. A lower number indicates better efficiency in managing working capital.
Ashland Global Holdings Inc's cash conversion cycle has varied over the past five years. In September 2024, the company's cash conversion cycle was 122.79 days, an improvement from the previous year's 156.01 days. This suggests that the company managed its inventory, accounts receivable, and accounts payable more efficiently in 2024.
Comparing to the historical data, Ashland Global Holdings Inc had its best performance in managing its cash conversion cycle in September 2024, with the lowest number in the past five years. This indicates that the company has made progress in optimizing its working capital management and achieving a quicker cash conversion cycle.
Peer comparison
Sep 30, 2024