Ashland Global Holdings Inc (ASH)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 300,000 | 399,000 | 439,000 | 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 |
| Short-term investments | US$ in thousands | — | 76,000 | 77,000 | 77,000 | 77,000 | 71,000 | 61,000 | 61,000 | 61,000 | 61,000 | 36,000 | 36,000 | 37,000 | 27,000 | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.61 | 1.02 | 1.14 | 1.25 | 1.08 | 0.97 | 0.97 | 1.28 | 1.28 | 1.25 | 1.23 | 0.25 | 0.26 | 0.48 | 0.66 | 0.57 | 0.56 | 0.44 | 0.36 | 0.23 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($300,000K
+ $—K)
÷ $490,000K
= 0.61
The cash ratio for Ashland Global Holdings Inc has shown fluctuation over the past few quarters. The cash ratio is a liquidity ratio that measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
Looking at the trend, we observe that the cash ratio has been mostly above 1 as of Jun 30, 2022, indicating that Ashland Global has had more than enough cash to cover its short-term liabilities during this period. However, the cash ratio dropped significantly in Dec 31, 2021, and in the subsequent quarters, raising concerns about the company's liquidity position during that time.
It is noteworthy that the cash ratio improved in the recent quarters, especially reaching 1.25 in Mar 31, 2024, showing a positive trend towards having a sufficient cash position to meet short-term obligations. Overall, the company's cash ratio appears to have recovered and strengthened in recent quarters, which is a positive sign for its liquidity position. It will be prudent to continue monitoring the cash ratio in future periods to ensure the company maintains a healthy level of liquidity.
Peer comparison
Sep 30, 2024