Ashland Global Holdings Inc (ASH)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 163,000 | 177,000 | 238,000 | 224,000 | 919,000 | 927,000 | 914,000 | 958,000 | 213,000 | 221,000 | 182,000 | 139,000 | -484,000 | -508,000 | -102,000 | -73,000 | 585,000 | 505,000 | 104,000 | 74,000 |
| 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 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $163,000K ÷ $5,866,000K
= 2.78%
To analyze Ashland Inc's return on assets (ROA), we can observe a fluctuating trend in the ROA over the past eight quarters. The ROA for Dec 31, 2023, was 2.80%, which decreased from 3.00% in the previous quarter. This downward trend in ROA suggests a potential decline in the company's ability to generate earnings from its assets.
Comparing the ROA for the current quarter to the same quarter of the previous year, there has been a significant decrease. In Dec 31, 2022, the ROA was notably higher at 14.68%, and this decline may indicate a reduced ability to efficiently utilize the company's assets to generate profits.
The ROA peaked at 14.92% in Sep 30, 2022, and has remained relatively consistent since then, hovering around the 14% mark. This stability could indicate that Ashland Inc's asset utilization remained relatively steady during this period.
It is essential to determine the reasons behind the recent fluctuation in ROA to assess the company's operational efficiency and profitability. Furthermore, this analysis provides insight into the company's ability to generate earnings from its assets and can be used in conjunction with other financial ratios to gain a comprehensive understanding of Ashland Inc's financial performance.
Peer comparison
Dec 31, 2023