Ashland Global Holdings Inc (ASH)

Operating return on assets (ROA) is a key metric that indicates how efficiently a company is generating operating income relative to its total assets. Ashland Global Holdings Inc's operating ROA has shown fluctuations over the past five years, as per the provided data.

In Sep 30, 2024, the operating ROA was negative at -0.46%, indicating that the company had generated an operating loss in relation to its assets. This suggests that Ashland Global Holdings Inc's operating activities were not highly productive in that period.

However, in Sep 30, 2023 and Sep 30, 2022, the operating ROA was positive at 2.90% and 5.36%, respectively, reflecting a turnaround in the company's operating efficiency. The significant increase in 2022 compared to the previous year indicates that Ashland Global Holdings Inc was able to better utilize its assets to generate operating income.

Prior to 2022, in Sep 30, 2021, the operating ROA was 2.90%, which was slightly higher, but in line with the performance of 2023. This suggests that the company maintained a consistent level of operating efficiency during that period.

In contrast, in Sep 30, 2020, Ashland Global Holdings Inc experienced a significantly lower operating ROA at -6.70%, indicating a sharp decline in operating performance and efficiency compared to the other years. This negative operating ROA could be attributed to various factors such as poor operational management or decreased asset utilization.

Overall, the trend in Ashland Global Holdings Inc's operating ROA shows variability, with positive and negative fluctuations over the past five years. It is essential for the company to focus on improving its operating efficiency to ensure sustainable profitability and effective asset utilization in the future.

Peer comparison

Sep 30, 2024