Ashland Global Holdings Inc (ASH)
Profitability ratios
Return on sales
| 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 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% |
| Operating profit margin | 5.47% | 7.85% | 11.32% | 12.94% | 13.64% | 13.92% | 14.25% | 11.91% | 10.02% | 9.05% | 2.86% | 2.97% | -23.63% | -22.87% | -20.04% | -19.63% | 5.23% | 4.00% | 3.29% | 2.75% |
| Pretax margin | 5.80% | 7.76% | 11.27% | 9.65% | 39.42% | 39.84% | 39.86% | 42.40% | 8.54% | 8.62% | 7.97% | 7.57% | -25.01% | -26.34% | -5.96% | -4.98% | 26.94% | 24.91% | 4.82% | 3.22% |
| Net profit margin | 7.62% | 8.08% | 10.32% | 9.32% | 38.21% | 38.75% | 38.88% | 42.58% | 9.88% | 10.47% | 10.01% | 7.51% | -24.81% | -25.20% | -5.15% | -3.56% | 27.79% | 23.51% | 4.08% | 2.87% |
The profitability ratios of Ashland Inc indicate a fluctuating trend over the reporting periods. The gross profit margin has shown a decline from 34.69% in December 2022 to 28.10% in December 2023, which may be a cause for concern. This could suggest a decrease in the company's ability to control production costs.
Similarly, the operating profit margin has fluctuated, peaking at 12.05% in September 2022 before declining to 4.91% in December 2023. This indicates potential challenges in managing operating expenses efficiently.
The pretax margin has also shown variability, with a notable spike to 11.15% in June 2023, followed by a decrease to 5.33% in December 2023. This suggests fluctuations in the company's ability to generate profit before taxes, which could be influenced by factors such as changes in revenue and expenses.
The net profit margin has displayed significant fluctuations, ranging from 38.23% in December 2022 to 7.67% in December 2023. Such a vast disparity may be indicative of extraordinary events or accounting adjustments that have had a substantial impact on the net profitability of the company.
In conclusion, the profitability ratios of Ashland Inc reflect a volatile performance over the reporting periods, with declining margins in several categories. It is essential for stakeholders to further investigate the drivers behind these fluctuations to understand the company's overall profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 2.78% | 2.98% | 3.95% | 3.62% | 14.68% | 14.92% | 14.25% | 14.13% | 3.25% | 3.34% | 2.69% | 2.09% | -7.18% | -7.39% | -1.46% | -1.05% | 7.99% | 6.96% | 1.31% | 0.93% |
| Return on total capital | 2.66% | 3.90% | 5.83% | 6.77% | 7.08% | 7.42% | 7.33% | 5.68% | 4.97% | 4.39% | 1.09% | 1.17% | -9.76% | -10.00% | -8.71% | -8.90% | 2.15% | 1.70% | 1.53% | 1.26% |
| Return on equity (ROE) | 5.34% | 5.72% | 7.56% | 6.86% | 27.70% | 28.79% | 27.99% | 28.33% | 7.71% | 8.03% | 5.68% | 4.46% | -15.50% | -16.73% | -3.39% | -2.45% | 16.14% | 14.14% | 3.23% | 2.20% |
From the provided data, we can analyze the profitability ratios of Ashland Inc over the past eight quarters.
The operating return on assets (Operating ROA) provides insight into the company's operating efficiency in generating profits from its assets. We observe a downward trend in this ratio, declining from 4.64% in September 2022 to 1.79% in December 2023. This indicates a decrease in the company's ability to generate operating profits from its assets.
The return on assets (ROA) reflects the company's overall ability to generate profit from its total assets. Similarly, there is a downward trend in this ratio, declining from 14.92% in September 2022 to 2.80% in December 2023. This suggests a decline in the company's overall profitability relative to its total assets.
The return on total capital examines the company's ability to generate a return for both equity and debt holders. This ratio also shows a downward trend, declining from 6.48% in September 2022 to 2.62% in December 2023. This indicates a decrease in the company's efficiency in generating returns for its total capital providers.
Lastly, the return on equity (ROE) represents the company's ability to generate a profit for its shareholders. Similar to the other ratios, the ROE has also declined over the quarters, falling from 28.79% in September 2022 to 5.37% in December 2023, signaling a decline in the company's ability to generate returns for its shareholders' equity.
In summary, the profitability ratios of Ashland Inc have shown a consistent decline over the past eight quarters, indicating a decrease in the company's efficiency in generating profits from its assets and capital, impacting its overall profitability and return for shareholders.