Ashland Global Holdings Inc (ASH)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 601,000 | 668,000 | 750,000 | 812,000 | 835,000 | 831,000 | 811,000 | 744,000 | 684,000 | 670,000 | 533,000 | 556,000 | 593,000 | 599,000 | 640,000 | 651,000 | 652,000 | 651,000 | 788,000 | 810,000 |
| Revenue (ttm) | US$ in thousands | 2,139,000 | 2,191,000 | 2,306,000 | 2,404,000 | 2,405,000 | 2,392,000 | 2,351,000 | 2,250,000 | 2,155,000 | 2,111,000 | 1,819,000 | 1,850,000 | 1,951,000 | 2,016,000 | 1,981,000 | 2,048,000 | 2,105,000 | 2,148,000 | 2,551,000 | 2,578,000 |
| Gross profit margin | 28.10% | 30.49% | 32.52% | 33.78% | 34.72% | 34.74% | 34.50% | 33.07% | 31.74% | 31.74% | 29.30% | 30.05% | 30.39% | 29.71% | 32.31% | 31.79% | 30.97% | 30.31% | 30.89% | 31.42% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $601,000K ÷ $2,139,000K
= 28.10%
Based on the data provided, Ashland Inc's gross profit margin has shown a declining trend over the past eight quarters. The gross profit margin decreased from 34.69% in the fourth quarter of 2022 to 28.10% in the fourth quarter of 2023. This suggests that the company's cost of goods sold relative to its revenue has been increasing, thereby impacting the overall profitability of the company's core business operations.
The declining trend in the gross profit margin may be indicative of several potential issues, including rising production costs, pricing pressure, or inefficiencies in the production process. It is essential for Ashland Inc to closely monitor and address the factors contributing to the decline in its gross profit margin in order to sustain and improve its profitability in the future.
Peer comparison
Dec 31, 2023