Ashland Global Holdings Inc (ASH)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,506,000 | 1,768,000 | 1,717,000 | 1,547,000 | 1,433,000 |
| Total current liabilities | US$ in thousands | 456,000 | 553,000 | 934,000 | 813,000 | 757,000 |
| Current ratio | 3.30 | 3.20 | 1.84 | 1.90 | 1.89 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,506,000K ÷ $456,000K
= 3.30
The current ratio of Ashland Inc has shown fluctuations over the past five years. As of September 30, 2023, the company's current ratio stands at 3.30, reflecting an increase from the previous year's ratio of 3.20. This indicates that Ashland Inc has $3.30 in current assets for every $1 of current liabilities, illustrating a strong ability to meet its short-term obligations.
The upward trend in the current ratio implies that the company's liquidity position has improved, providing a cushion to cover its short-term financial obligations. This may be attributed to effective management of working capital, which includes efficient management of inventory, receivables, and payables.
The significant improvement in the current ratio over the past two years suggests a strengthening liquidity position and a reduced risk of financial distress in the short term. However, it is essential to continue monitoring the current ratio to ensure that the company maintains a healthy liquidity position relative to its current liabilities.
Peer comparison
Sep 30, 2023