Ashland Global Holdings Inc (ASH)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 117,000 | 172,000 | 261,000 | 311,000 | 328,000 | 333,000 | 335,000 | 268,000 | 216,000 | 191,000 | 52,000 | 55,000 | -461,000 | -461,000 | -397,000 | -402,000 | 110,000 | 86,000 | 84,000 | 71,000 |
| Total assets | US$ in thousands | 5,866,000 | 5,939,000 | 6,029,000 | 6,183,000 | 6,259,000 | 6,213,000 | 6,412,000 | 6,780,000 | 6,549,000 | 6,612,000 | 6,766,000 | 6,664,000 | 6,742,000 | 6,877,000 | 6,986,000 | 6,968,000 | 7,326,000 | 7,251,000 | 7,925,000 | 7,998,000 |
| Operating ROA | 1.99% | 2.90% | 4.33% | 5.03% | 5.24% | 5.36% | 5.22% | 3.95% | 3.30% | 2.89% | 0.77% | 0.83% | -6.84% | -6.70% | -5.68% | -5.77% | 1.50% | 1.19% | 1.06% | 0.89% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $117,000K ÷ $5,866,000K
= 1.99%
Operating return on assets (operating ROA) measures a company's ability to generate operating income from its assets. Looking at Ashland Inc's operating ROA over the past eight quarters, there has been notable fluctuation.
In the most recent quarter, the operating ROA stands at 1.79%, which is a decrease from the previous quarter's 2.68%. The trend in the last few quarters shows a general decline from the peak of 4.64% in the third quarter of 2022.
This suggests that Ashland's ability to generate operating income from its assets has been fluctuating, and the recent trend indicates a decrease in efficiency. It is essential for the company to address the factors contributing to this downward trend and potentially implement strategies to improve the utilization of its assets to enhance operating ROA in the future.
Peer comparison
Dec 31, 2023