Ashland Global Holdings Inc (ASH)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 300,000 | 417,000 | 646,000 | 210,000 | 454,000 |
| Short-term investments | US$ in thousands | 73,000 | 77,000 | 61,000 | 37,000 | 30,000 |
| Receivables | US$ in thousands | 243,000 | 338,000 | 402,000 | 369,000 | 471,000 |
| Total current liabilities | US$ in thousands | 490,000 | 456,000 | 553,000 | 934,000 | 813,000 |
| Quick ratio | 1.26 | 1.82 | 2.01 | 0.66 | 1.17 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($300,000K
+ $73,000K
+ $243,000K)
÷ $490,000K
= 1.26
The quick ratio of Ashland Global Holdings Inc has fluctuated over the past five years. In 2024, the quick ratio stood at 1.26, indicating that the company had $1.26 in liquid assets for every $1 of current liabilities. This was a decrease from the previous year's ratio of 1.82. The substantial decrease in the quick ratio from 2023 to 2024 suggests that the company may have reduced its short-term liquidity or increased its current liabilities.
Looking back, the quick ratio was relatively strong in 2022 at 2.01, reflecting a significant improvement in the company's ability to cover its short-term obligations with its liquid assets. This followed a relatively lower quick ratio of 0.66 in 2021, which signaled a potential liquidity strain or a high level of current liabilities compared to liquid assets.
In 2020, the quick ratio was 1.17, showing a moderate level of liquidity to meet short-term obligations. Overall, the trend in Ashland Global Holdings Inc's quick ratio indicates fluctuations in its liquidity position over the past five years, which could be influenced by various factors such as changes in working capital management, current asset composition, or debt levels. Further analysis of the company's financial statements and operational activities would be necessary to provide a more in-depth understanding of the drivers behind these fluctuations.
Peer comparison
Sep 30, 2024