Ashland Global Holdings Inc (ASH)
Debt-to-assets ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,349,000 | 1,314,000 | 1,270,000 | 1,596,000 | 1,573,000 |
| Total assets | US$ in thousands | 5,645,000 | 5,939,000 | 6,213,000 | 6,612,000 | 6,877,000 |
| Debt-to-assets ratio | 0.24 | 0.22 | 0.20 | 0.24 | 0.23 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,349,000K ÷ $5,645,000K
= 0.24
The debt-to-assets ratio of Ashland Global Holdings Inc has been relatively stable over the past five years, ranging from 0.20 to 0.24. This ratio indicates the proportion of the company's assets that are financed through debt.
A debt-to-assets ratio of 0.24 as of September 30, 2024, implies that 24% of the company's total assets are funded by debt, while the remaining 76% are financed through equity. This suggests that Ashland Global Holdings Inc relies more on equity to finance its assets compared to debt.
The trend of the debt-to-assets ratio over the period indicates that the company has maintained a prudent approach in managing its debt levels in relation to its asset base. A lower ratio typically signifies lower financial risk, as it indicates a lower reliance on debt for financing operations.
Overall, the relatively consistent and moderate debt-to-assets ratio of Ashland Global Holdings Inc indicates a balanced capital structure, with a manageable level of debt relative to its asset base.
Peer comparison
Sep 30, 2024