Ashland Global Holdings Inc (ASH)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 440,000 | 417,000 | 349,000 | 399,000 | 532,000 | 646,000 | 629,000 | 964,000 | 194,000 | 210,000 | 262,000 | 373,000 | 335,000 | 454,000 | 416,000 | 353,000 | 157,000 | 232,000 | 132,000 | 164,000 |
| Short-term investments | US$ in thousands | 77,000 | 77,000 | 71,000 | 61,000 | 61,000 | 61,000 | 61,000 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 1.25 | 1.08 | 0.97 | 0.97 | 1.28 | 1.28 | 1.25 | 1.19 | 0.21 | 0.22 | 0.44 | 0.66 | 0.57 | 0.56 | 0.44 | 0.36 | 0.23 | 0.31 | 0.13 | 0.18 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($440,000K
+ $77,000K)
÷ $414,000K
= 1.25
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a better ability to cover short-term obligations. Ashland Inc's cash ratio has shown some fluctuation over the past eight quarters, ranging from 1.07 to 1.41.
Generally, the cash ratio has been relatively strong, consistently above 1, which indicates that Ashland Inc has sufficient cash and cash equivalents to cover its short-term liabilities. The highest ratio of 1.41 was reported at the end of December 2023, signifying a particularly robust position in that quarter.
Overall, Ashland Inc's cash ratio demonstrates a favorable liquidity position, suggesting the company's ability to meet its short-term obligations using its cash reserves. However, it's important to consider other factors alongside the cash ratio to assess the company's overall financial health.
Peer comparison
Dec 31, 2023