Ashland Global Holdings Inc (ASH)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.44 | 2.98 | 3.15 | 3.30 | 3.30 | 3.53 | 3.46 | 3.72 | 3.20 | 3.30 | 2.50 | 1.91 | 1.84 | 2.05 | 2.49 | 2.36 | 1.90 | 1.78 | 1.69 | 1.95 |
| Quick ratio | 1.11 | 1.51 | 1.71 | 1.72 | 1.82 | 1.77 | 1.81 | 2.03 | 2.01 | 2.14 | 1.74 | 0.63 | 0.66 | 1.12 | 1.44 | 1.27 | 1.14 | 0.93 | 0.88 | 0.87 |
| 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 |
Ashland Global Holdings Inc's liquidity ratios show a generally positive trend over the periods provided. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has improved steadily from 1.69 in December 2019 to 3.15 in March 2024, indicating a strong ability to meet its short-term obligations.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown improvement, rising from 0.87 in December 2019 to 1.71 in March 2024. This indicates the company's ability to cover immediate liabilities without relying on the sale of inventory.
The cash ratio, which reflects the company's ability to cover its current liabilities with its cash and cash equivalents, has also shown strong improvement over the periods, peaking at 1.28 in December 2022.
Overall, Ashland Global Holdings Inc has displayed a consistent improvement in its liquidity position, as indicated by the upward trend in its current, quick, and cash ratios. These ratios suggest that the company is well-positioned to meet its short-term financial obligations and has a strong liquidity position.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Ashland Global Holdings Inc has shown fluctuations over the past two years. From September 2020 to September 2021, the cash conversion cycle ranged between 123.83 days and 171.40 days. There was a noticeable decrease in the cycle in the later part of 2022, reaching a low of 122.77 days in September 2024. This indicates an improvement in the efficiency of the company's working capital management.
The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle suggests that the company is able to efficiently manage its operations, inventory, and accounts receivable. This can lead to improved liquidity and profitability as the company can generate cash more quickly.
Analyzing the trend of the cash conversion cycle can provide insights into the company's operational efficiency and effectiveness in managing its working capital. It is essential for Ashland Global Holdings Inc to continue monitoring and optimizing its cash conversion cycle to ensure it remains competitive and financially healthy in the long term.