Ashland Global Holdings Inc (ASH)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (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 |
| Long-term debt | US$ in thousands | 1,341,000 | 1,314,000 | 1,328,000 | 1,328,000 | 1,316,000 | 1,270,000 | 1,302,000 | 1,336,000 | 1,580,000 | 1,596,000 | 1,578,000 | 1,571,000 | 1,601,000 | 1,573,000 | 1,547,000 | 1,535,000 | 1,502,000 | 1,501,000 | 2,275,000 | 2,275,000 |
| Total stockholders’ equity | US$ in thousands | 3,053,000 | 3,097,000 | 3,149,000 | 3,267,000 | 3,318,000 | 3,220,000 | 3,266,000 | 3,381,000 | 2,763,000 | 2,752,000 | 3,202,000 | 3,114,000 | 3,122,000 | 3,036,000 | 3,013,000 | 2,983,000 | 3,625,000 | 3,571,000 | 3,217,000 | 3,362,000 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $117,000K ÷ ($1,341,000K + $3,053,000K)
= 2.66%
Ashland Inc's return on total capital has fluctuated over the past eight quarters. It decreased from 6.48% in the third quarter of 2022 to 4.79% in the second quarter of 2022, before rising to 5.96% in the first quarter of 2023. Subsequently, it increased further to 5.79% in the second quarter of 2023, indicating an improvement. However, in the third quarter of 2023, the return on total capital decreased to 3.75%, and further decreased to 2.62% in the fourth quarter of 2023.
The fluctuation in the return on total capital suggests that Ashland Inc's efficiency in generating returns from its total capital has varied during this period. Further analysis of the underlying factors driving these fluctuations, such as changes in profitability, asset utilization, and capital structure, would be necessary to gain a deeper understanding of the company's performance.
Peer comparison
Dec 31, 2023