Ashland Global Holdings Inc (ASH)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.25% | 30.49% | 34.71% | 31.74% | 29.71% |
| Operating profit margin | -1.23% | 7.85% | 13.93% | 9.10% | -22.87% |
| Pretax margin | -2.56% | 7.76% | 39.82% | 8.62% | -26.29% |
| Net profit margin | 8.00% | 8.12% | 38.77% | 10.42% | -25.20% |
The profitability ratios of Ashland Global Holdings Inc show varying trends over the last five years.
1. Gross Profit Margin:
The gross profit margin has been decreasing over the past five years, starting at 34.71% in 2022 and falling to 29.25% in 2024. This indicates a decline in the company's ability to generate profits at the production level.
2. Operating Profit Margin:
The operating profit margin has fluctuated significantly during the period, ranging from -22.87% in 2020 to 13.93% in 2022. However, it dropped to -1.23% in 2024, implying that the company's operating expenses may have increased relative to its revenue.
3. Pretax Margin:
Similarly, the pretax margin has shown inconsistency, with a significant increase from 8.62% in 2021 to 39.82% in 2022 before declining to -2.56% in 2024. This suggests that while the company experienced a period of high profitability, it faced challenges in generating pre-tax profits in the most recent year.
4. Net Profit Margin:
The net profit margin has also demonstrated fluctuations, with the most notable improvement seen in 2022 when it reached 38.77%. However, it decreased to 8.00% in 2024, indicating that the company's bottom-line profitability has been impacted.
In conclusion, Ashland Global Holdings Inc has experienced variability in its profitability ratios over the five-year period, with declining gross profit margin and mixed performance in operating, pretax, and net profit margins. Further analysis would be needed to understand the underlying reasons for these fluctuations and to assess the company's overall financial health.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.46% | 2.90% | 5.36% | 2.90% | -6.70% |
| Return on assets (ROA) | 2.99% | 3.00% | 14.92% | 3.33% | -7.39% |
| Return on total capital | -0.62% | 3.90% | 7.42% | 4.42% | -10.00% |
| Return on equity (ROE) | 5.89% | 5.75% | 28.79% | 7.99% | -16.73% |
Ashland Global Holdings Inc's profitability ratios have exhibited some fluctuations over the last five years.
1. Operating ROA: This ratio measures the company's operating profitability relative to its total assets. It declined significantly from 5.36% in 2022 to -0.46% in 2024, indicating a decrease in operational efficiency in generating earnings from its assets.
2. ROA: Ashland's overall return on assets remained relatively stable over the years, ranging from -7.39% in 2020 to 2.99% in 2024. This ratio shows that the company's profitability in relation to its total assets improved in the recent years.
3. Return on Total Capital: This ratio indicates the company's ability to generate returns on its total invested capital. Ashland's return on total capital fluctuated, reaching a low of -10.00% in 2020, and more recently showing a negative return of -0.62% in 2024.
4. ROE: Return on equity reflects the company's profitability in relation to shareholders' equity. Ashland's ROE also experienced fluctuations, notably with a low of -16.73% in 2020 and a high of 28.79% in 2022. However, in 2024, the ROE decreased to 5.89%, signifying a decline in profitability relative to shareholders' equity.
In conclusion, while Ashland Global Holdings Inc has shown improvements in certain profitability ratios, such as ROA, its operating ROA and return on equity have shown mixed performance. The company may need to focus on enhancing operational efficiency and maximizing returns to improve overall profitability and investor confidence.