Ashland Global Holdings Inc (ASH)

Ashland Global Holdings Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio, which measures the proportion of total assets financed by debt, has shown a slight increase over the past two years, indicating a higher reliance on debt to finance assets.

The debt-to-capital ratio, which shows the percentage of capital structure that comes from debt, has also increased steadily over the same period, suggesting a higher proportion of debt in the company's overall capital structure.

The debt-to-equity ratio, which illustrates the extent to which the company is leveraged through debt financing relative to shareholder equity, experienced fluctuations but has shown an increasing trend over the past two years. This indicates a higher level of financial risk associated with the company's capital structure.

The financial leverage ratio, which measures the level of debt relative to equity, has shown a decreasing trend over the past few years, indicating an improvement in the company's ability to cover its financial obligations with equity.

Overall, Ashland Global Holdings Inc's solvency ratios suggest that the company has been gradually increasing its reliance on debt to finance its operations and investments. This higher level of debt could pose financial risks, especially if the company faces challenges in generating sufficient cash flows to meet its debt obligations in the future.

---

Coverage ratios

Interest coverage is a crucial financial metric that reflects a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest payments.

Looking at the data provided for Ashland Global Holdings Inc, the interest coverage ratio has fluctuated over the past five years. In 2024, the interest coverage ratio was significantly negative at -0.44, suggesting that the company's operating income was insufficient to cover its interest expenses.

In the preceding years, the interest coverage ratio exhibited a mixed trend:
- In 2023, the interest coverage ratio was 2.97, indicating an improvement in the company's ability to cover interest payments.
- In 2022, the interest coverage ratio increased further to 5.29, suggesting a stronger financial position in meeting interest obligations.
- In 2021, the interest coverage ratio decreased to 2.70, indicating a slight decline in the company's ability to cover interest expenses.
- In 2020, the interest coverage ratio was notably negative at -5.12, indicating a significant challenge in meeting interest payments with operating income.

Overall, the company's interest coverage has shown variability over the years, with a mix of positive and negative trends. It is essential for investors and stakeholders to closely monitor this ratio to assess the company's ability to manage its debt obligations and ensure financial stability.