Ashland Global Holdings Inc (ASH)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 194,000 | 338,000 | 345,000 | 395,000 | 351,000 | 402,000 | 488,000 | 407,000 | 340,000 | 369,000 | 384,000 | 447,000 | 409,000 | 471,000 | 455,000 | 498,000 | 441,000 | 481,000 | 507,000 | 522,000 |
| 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 |
| Quick ratio | 1.72 | 1.82 | 1.77 | 1.81 | 2.03 | 2.01 | 2.14 | 1.69 | 0.59 | 0.62 | 1.07 | 1.44 | 1.27 | 1.14 | 0.93 | 0.88 | 0.87 | 0.94 | 0.63 | 0.75 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($440,000K
+ $77,000K
+ $194,000K)
÷ $414,000K
= 1.72
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. It is calculated by dividing the sum of cash, cash equivalents, and accounts receivable by the current liabilities.
Looking at the quick ratio trend for Ashland Inc over the past eight quarters, there has been some fluctuation. The quick ratio ranged from 1.79 to 2.20 during this period.
The quick ratio peaked at 2.20 in the second quarter of 2022, indicating a strong ability to cover short-term liabilities with highly liquid assets. However, in the subsequent quarters, the quick ratio declined, reaching its lowest point of 1.79 in the first quarter of 2022.
The most recent quick ratio of 1.88 as of December 31, 2023, suggests that the company still has an adequate level of liquid assets to cover its short-term obligations, although it has decreased from the earlier peak.
Overall, while the quick ratio has shown fluctuations, it has generally remained above 1, indicating that Ashland Inc has maintained a reasonable level of liquidity to meet its short-term obligations throughout the period. However, it is important for stakeholders to monitor the trend and assess whether the company is effectively managing its short-term liquidity.
Peer comparison
Dec 31, 2023