Ashland Global Holdings Inc (ASH)
Debt-to-equity 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-equity ratio | 0.44 | 0.42 | 0.42 | 0.41 | 0.40 | 0.39 | 0.40 | 0.40 | 0.57 | 0.58 | 0.49 | 0.50 | 0.51 | 0.52 | 0.51 | 0.51 | 0.41 | 0.42 | 0.71 | 0.68 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,341,000K ÷ $3,053,000K
= 0.44
The debt-to-equity ratio for Ashland Inc has fluctuated over the past eight quarters, ranging from 0.39 to 0.44. Generally, a lower debt-to-equity ratio indicates lower financial risk and potential for greater financial stability, as it suggests that the company is financing its growth with more equity capital rather than debt.
The trend of decreasing debt-to-equity ratio over time, except for a slight increase in the most recent quarter, may imply that the company has been reducing its reliance on debt to finance its operations and expansion. However, it's essential to note that a very low debt-to-equity ratio may also indicate an underutilization of debt, which can limit potential growth opportunities.
Overall, the analysis of the debt-to-equity ratio suggests that Ashland Inc has been managing its capital structure prudently, with a balance between debt and equity financing. However, further examination of the company's overall financial health and future plans would be necessary to gain a comprehensive understanding of its capital structure management.
Peer comparison
Dec 31, 2023