Ashland Global Holdings Inc (ASH)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 30.49% | 34.71% | 31.74% | 29.71% | 30.31% |
| Operating profit margin | 7.85% | 13.93% | 9.10% | -22.87% | 4.00% |
| Pretax margin | 7.76% | 39.82% | 8.62% | -26.29% | 24.91% |
| Net profit margin | 8.12% | 38.77% | 10.42% | -25.20% | 23.51% |
Based on the provided data, Ashland Inc's profitability ratios show a fluctuating trend over the past five years. The gross profit margin decreased from 34.71% in 2022 to 30.49% in 2023, indicating a decrease in the company's ability to control production costs. The operating profit margin also declined from 12.05% in 2022 to 7.26% in 2023, suggesting a decrease in the company's ability to generate profit from its core business operations.
The pretax margin decreased from 8.62% in 2022 to 7.30% in 2023, showing a slight decline in the company's profitability before accounting for taxes. Moreover, the net profit margin decreased significantly from 38.77% in 2022 to 8.12% in 2023, indicating a substantial decrease in the company's profitability after accounting for all expenses, including taxes and interest.
Overall, the profitability ratios of Ashland Inc indicate a mixed performance, with declining margins in 2023 compared to previous years. This analysis suggests the company may need to focus on controlling costs and optimizing its operations to improve profitability in the future.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.90% | 5.36% | 2.90% | -6.70% | 1.19% |
| Return on assets (ROA) | 3.00% | 14.92% | 3.33% | -7.39% | 6.96% |
| Return on total capital | 3.90% | 7.42% | 4.42% | -10.00% | 1.70% |
| Return on equity (ROE) | 5.75% | 28.79% | 7.99% | -16.73% | 14.14% |
Based on the provided data for Ashland Inc's profitability ratios, we can observe the following trends:
Operating return on assets (Operating ROA) has shown a declining trend over the past five years, decreasing from 4.64% in 2022 to 2.68% in 2023. This suggests that the company's operating income generated from its assets has decreased.
Return on assets (ROA) experienced a significant decline in 2020, with a negative ROA of -7.39%. However, there has been a subsequent recovery, with the ROA improving to 3.00% in 2023. This may indicate a rebound in the company's ability to generate profits from its assets.
Return on total capital has also shown a declining trend from 6.48% in 2022 to 3.75% in 2023, implying that the company's overall profitability in relation to its total capital employed has decreased.
Return on equity (ROE) exhibited a similar trend to ROA, with a notable decline in 2020, showing a negative ROE of -16.73%. However, there has been a subsequent recovery, with the ROE improving to 5.75% in 2023. This suggests that the company's ability to generate profits from shareholders' equity has improved in recent years.
In summary, while Ashland Inc's profitability ratios have shown some fluctuations over the past five years, there are indications of recovery in certain profitability measures such as ROA and ROE. However, the declining trend in operating return on assets and return on total capital may warrant further analysis to identify areas for potential improvement.