Ashland Global Holdings Inc (ASH)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 172,000 | 333,000 | 192,000 | -461,000 | 86,000 |
| Total assets | US$ in thousands | 5,939,000 | 6,213,000 | 6,612,000 | 6,877,000 | 7,251,000 |
| Operating ROA | 2.90% | 5.36% | 2.90% | -6.70% | 1.19% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $172,000K ÷ $5,939,000K
= 2.90%
The operating return on assets (operating ROA) for Ashland Inc has fluctuated over the past five years. In 2023, the operating ROA decreased to 2.68% from 4.64% in 2022, signaling a decline in the company's ability to generate operating profits from its assets. This decrease could be attributed to changes in operating expenses, asset utilization, or a combination of both. It's important to note that a lower operating ROA indicates that the company is generating fewer operating profits relative to its assets, which may raise concerns about operational efficiency and asset productivity. Further analysis of the company's financial and operational performance is necessary to understand the factors driving these fluctuations in operating ROA.
Peer comparison
Sep 30, 2023