Ashland Global Holdings Inc (ASH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 3,053,000 | 3,097,000 | 3,149,000 | 3,267,000 | 3,318,000 | 3,220,000 | 3,266,000 | 3,381,000 | 2,763,000 | 2,752,000 | 3,202,000 | 3,114,000 | 3,122,000 | 3,036,000 | 3,013,000 | 2,983,000 | 3,625,000 | 3,571,000 | 3,217,000 | 3,362,000 |
| Debt-to-capital ratio | 0.31 | 0.30 | 0.30 | 0.29 | 0.28 | 0.28 | 0.29 | 0.28 | 0.36 | 0.37 | 0.33 | 0.34 | 0.34 | 0.34 | 0.34 | 0.34 | 0.29 | 0.30 | 0.41 | 0.40 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,341,000K ÷ ($1,341,000K + $3,053,000K)
= 0.31
The debt-to-capital ratio for Ashland Inc has been relatively stable in recent quarters, ranging between 0.28 and 0.31. This ratio measures the proportion of the company's capital that is funded by debt, with a lower ratio indicating a lower reliance on debt financing.
The gradual increase from 0.28 at the end of 2022 to 0.31 at the end of 2023 suggests a marginal shift towards a higher proportion of debt in the company's capital structure. However, it is important to note that the changes are relatively small and may not significantly impact the company's overall financial risk.
Overall, Ashland Inc's debt-to-capital ratio indicates a moderate reliance on debt funding, but the slight upward trend should be carefully monitored to assess its potential impact on the company's financial flexibility and risk profile.
Peer comparison
Dec 31, 2023