Ashland Global Holdings Inc (ASH)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 169,000 | 178,000 | 927,000 | 220,000 | -508,000 |
| Total stockholders’ equity | US$ in thousands | 2,868,000 | 3,097,000 | 3,220,000 | 2,752,000 | 3,036,000 |
| ROE | 5.89% | 5.75% | 28.79% | 7.99% | -16.73% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $169,000K ÷ $2,868,000K
= 5.89%
Analyzing Ashland Global Holdings Inc's return on equity (ROE) over the past five years reveals a fluctuating trend. In 2024, the ROE stood at 5.89%, slightly higher than the previous year's ROE of 5.75%. This indicates a marginal improvement in the company's ability to generate profit from shareholders' equity.
In 2022, Ashland Global Holdings Inc experienced a significant increase in ROE to 28.79%, signifying a robust performance in utilizing shareholders' equity to generate profits. This substantial improvement could be a result of effective management strategies or favorable market conditions during that period.
The ROE in 2021 was 7.99%, reflecting a moderate performance compared to the peak in 2022 but still a positive sign of the company's profitability relative to its equity base.
In 2020, the company reported a negative ROE of -16.73%, indicating that the company incurred losses during that period, resulting in negative returns on shareholders' equity. This could be a concerning trend that requires further investigation into the reasons behind the loss.
Overall, while there have been fluctuations in Ashland Global Holdings Inc's ROE over the past five years, the company has shown resilience in maintaining positive ROE figures in most years, with 2022 standing out as a particularly strong year in terms of return on equity.
Peer comparison
Sep 30, 2024