Ashland Global Holdings Inc (ASH)
Cash conversion cycle
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 150.03 | 147.08 | 119.81 | 130.34 | 145.56 |
| Days of sales outstanding (DSO) | days | 56.31 | 61.37 | 63.80 | 85.28 | 81.73 |
| Number of days of payables | days | 50.33 | 61.96 | 59.78 | 54.35 | 76.32 |
| Cash conversion cycle | days | 156.01 | 146.48 | 123.83 | 161.26 | 150.98 |
September 30, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 150.03 + 56.31 – 50.33
= 156.01
The cash conversion cycle (CCC) of Ashland Inc has exhibited fluctuations over the past five years. In 2023, the CCC was 206.33 days, slightly lower than the previous year's 208.44 days. This indicates that Ashland Inc took slightly less time to convert its resources into cash during the most recent fiscal year. However, compared to 2021, the CCC has increased, signifying a longer period for the company to convert its inventory and receivables into cash.
The CCC for 2023 is also higher than that of 2020 and 2019, reflecting a longer overall cash conversion process compared to the previous two years. This suggests that Ashland Inc may be facing challenges in managing its working capital efficiency and converting its investments in inventory and receivables into cash in a timely manner.
Overall, the trend of the cash conversion cycle for Ashland Inc indicates variability and a need for further analysis to identify the operational and financial factors contributing to these fluctuations.
Peer comparison
Sep 30, 2023