Ashland Global Holdings Inc (ASH)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 133.06 | 126.42 | 129.85 | 139.54 | 150.03 | 167.02 | 167.37 | 168.32 | 147.08 | 144.34 | 138.87 | 131.51 | 119.81 | 146.74 | 144.42 | 144.33 | 130.34 | 167.94 | 159.64 | 159.01 |
| Days of sales outstanding (DSO) | days | 41.96 | 38.77 | 44.95 | 33.10 | 56.31 | 54.61 | 59.97 | 53.27 | 61.34 | 75.76 | 66.02 | 57.59 | 63.80 | 77.05 | 88.19 | 76.52 | 85.28 | 83.83 | 88.75 | 76.47 |
| Number of days of payables | days | 52.25 | 47.05 | 48.87 | 47.94 | 50.33 | 49.26 | 56.40 | 57.19 | 61.96 | 57.12 | 60.11 | 58.56 | 59.78 | 66.98 | 61.21 | 58.32 | 54.35 | 61.24 | 66.62 | 58.78 |
| Cash conversion cycle | days | 122.77 | 118.14 | 125.93 | 124.71 | 156.01 | 172.36 | 170.94 | 164.40 | 146.45 | 162.98 | 144.79 | 130.54 | 123.83 | 156.81 | 171.40 | 162.53 | 161.26 | 190.53 | 181.77 | 176.70 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 133.06 + 41.96 – 52.25
= 122.77
The cash conversion cycle of Ashland Global Holdings Inc has fluctuated over the past 20 quarters. The company's cash conversion cycle measures the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales. A lower cash conversion cycle indicates that the company is efficiently managing its working capital.
In the most recent quarter, as of September 30, 2024, Ashland Global Holdings Inc had a cash conversion cycle of 122.77 days. This suggests an improvement compared to the previous quarter, reflecting better efficiency in managing its cash flow cycle. However, it is important to note that this figure should be analyzed in conjunction with other financial metrics to get a holistic view of the company's financial health.
The company's cash conversion cycle has exhibited some volatility over the period under review, with fluctuations observed between 118.14 days and 190.53 days. During this time frame, the company has experienced varying levels of efficiency in managing its working capital and converting its assets into cash.
Overall, a downward trend in the cash conversion cycle over time would be indicative of improved operational efficiency and effective working capital management, contributing towards the company's overall financial performance and stability.
Peer comparison
Sep 30, 2024