Ashland Global Holdings Inc (ASH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,868,000 | 3,097,000 | 3,220,000 | 2,752,000 | 3,036,000 |
| Debt-to-capital ratio | 0.32 | 0.30 | 0.28 | 0.37 | 0.34 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,349,000K ÷ ($1,349,000K + $2,868,000K)
= 0.32
The debt-to-capital ratio of Ashland Global Holdings Inc has shown a fluctuating trend over the five-year period from September 30, 2020, to September 30, 2024. The ratio indicates the proportion of the company's capital structure that is financed by debt.
In 2020, the ratio stood at 0.34, signifying that 34% of the company's capital was debt-financed. The ratio decreased to 0.28 in 2022, indicating a lower reliance on debt for capital funding. However, there was an increase in 2023 to 0.30 before rising further to 0.32 in 2024.
Overall, the upward trend in the debt-to-capital ratio since 2022 suggests that Ashland Global Holdings Inc has been increasing its reliance on debt to finance its operations or growth initiatives. While a certain level of debt can be beneficial for leveraging opportunities, the company should monitor and manage its debt levels effectively to ensure financial stability and mitigate risks associated with excessive debt.
Peer comparison
Sep 30, 2024