Ashland Global Holdings Inc (ASH)
Debt-to-equity 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-equity ratio | 0.47 | 0.42 | 0.39 | 0.58 | 0.52 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,349,000K ÷ $2,868,000K
= 0.47
The debt-to-equity ratio of Ashland Global Holdings Inc has been fluctuating over the past five years. In 2024, the ratio stood at 0.47, indicating that the company had $0.47 in debt for every $1 of equity. This represents an increase compared to the previous year when the ratio was 0.42.
In 2022 and 2023, the company had a decreasing trend in its debt-to-equity ratio, with figures of 0.39 and 0.42, respectively. This suggests that the company was relying less on debt financing relative to equity during those years.
However, in 2021, the ratio spiked to 0.58, signifying a higher level of debt relative to equity compared to the preceding years. Similarly, in 2020, the ratio was 0.52, indicating a moderate level of debt compared to equity.
Overall, the variations in the debt-to-equity ratio of Ashland Global Holdings Inc reflect fluctuations in the company's capital structure and its utilization of debt financing. The trend towards lower ratios in 2022 and 2023 may indicate a more conservative approach to leverage, while the higher ratios in 2021 and 2024 suggest potential increased risk associated with higher debt levels relative to equity.
Peer comparison
Sep 30, 2024