Ashland Global Holdings Inc (ASH)
Return on equity (ROE)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 178,000 | 927,000 | 220,000 | -508,000 | 505,000 |
| Total stockholders’ equity | US$ in thousands | 3,097,000 | 3,220,000 | 2,752,000 | 3,036,000 | 3,571,000 |
| ROE | 5.75% | 28.79% | 7.99% | -16.73% | 14.14% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $178,000K ÷ $3,097,000K
= 5.75%
Looking at Ashland Inc's return on equity (ROE) over the past five years, there is a significant fluctuation in the ROE percentage. In 2023, the ROE stands at 5.75%, which is a notable decrease from the previous year's ROE of 28.79%.
The sharp decline in ROE from 2022 to 2023 indicates a potential decrease in efficiency in generating profits from shareholders' equity. A lower ROE may be attributed to a decline in net income or an increase in shareholders' equity.
Comparing the 2023 ROE with the 2021 and 2019 values, it's apparent that the 2023 ROE is closer to the lower ROEs observed in those years. This suggests a regression to previous levels after the high ROE in 2022.
The negative ROE in 2020 further accentuates the volatility in the company's performance. The negative figure indicates that the company incurred a net loss for the fiscal year, resulting in a negative return for shareholders' equity.
Overall, the fluctuation in ROE over the years suggests underlying changes in the company's profitability, asset utilization, and financial leverage. It would be important to investigate the factors driving these fluctuations to better understand the company's performance and future earnings prospects.
Peer comparison
Sep 30, 2023