Ashland Global Holdings Inc (ASH)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,314,000 | 1,270,000 | 1,596,000 | 1,573,000 | 1,501,000 |
| Total assets | US$ in thousands | 5,939,000 | 6,213,000 | 6,612,000 | 6,877,000 | 7,251,000 |
| Debt-to-assets ratio | 0.22 | 0.20 | 0.24 | 0.23 | 0.21 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,314,000K ÷ $5,939,000K
= 0.22
The debt-to-assets ratio for Ashland Inc has been relatively stable over the last five years, ranging from 0.20 to 0.30. This ratio indicates the proportion of the company's assets that are financed by debt. A lower ratio suggests lower financial risk, as it implies that the company has less reliance on debt funding. In the case of Ashland Inc, the ratio has generally been favorable, indicating a conservative approach to debt financing and strong asset coverage. The slight increase in the ratio in 2021 may signal a temporary increase in debt relative to assets, but the subsequent decrease in 2022 and 2023 suggests a reversion to a more balanced debt-to-assets structure. Overall, the trend in this ratio reflects a prudent balance between debt and assets in the company's financing mix.
Peer comparison
Sep 30, 2023