Ashland Global Holdings Inc (ASH)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 5,866,000 | 5,939,000 | 6,029,000 | 6,183,000 | 6,259,000 | 6,213,000 | 6,412,000 | 6,780,000 | 6,549,000 | 6,612,000 | 6,766,000 | 6,664,000 | 6,742,000 | 6,877,000 | 6,986,000 | 6,968,000 | 7,326,000 | 7,251,000 | 7,925,000 | 7,998,000 |
| Debt-to-assets ratio | 0.23 | 0.22 | 0.22 | 0.21 | 0.21 | 0.20 | 0.20 | 0.20 | 0.24 | 0.24 | 0.23 | 0.24 | 0.24 | 0.23 | 0.22 | 0.22 | 0.21 | 0.21 | 0.29 | 0.28 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,341,000K ÷ $5,866,000K
= 0.23
The debt-to-assets ratio is a measure of a company's financial leverage and indicates the proportion of a company's assets that are financed through debt. Ashland Inc's debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.20 to 0.23.
The trend of Ashland Inc's debt-to-assets ratio shows that the company has maintained a conservative approach to debt financing, with a significant portion of its assets being financed through equity rather than debt. This indicates a lower financial risk for the company, as it has less reliance on debt to fund its operations and investments.
The slight increase in the debt-to-assets ratio from 0.20 to 0.23 in the most recent quarter may indicate a moderate increase in the company's reliance on debt financing. However, it is important to note that the ratio remains at a relatively low level, suggesting that Ashland Inc continues to manage its debt levels prudently.
Overall, the consistent and relatively low debt-to-assets ratio of Ashland Inc reflects a financially conservative approach to capital structure, which may contribute to greater stability and resilience in the company's financial position.
Peer comparison
Dec 31, 2023