Ashland Global Holdings Inc (ASH)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 1.92 | 1.92 | 1.91 | 1.89 | 1.89 | 1.93 | 1.96 | 2.01 | 2.37 | 2.40 | 2.11 | 2.14 | 2.16 | 2.27 | 2.32 | 2.34 | 2.02 | 2.03 | 2.46 | 2.38 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,866,000K ÷ $3,053,000K
= 1.92
The financial leverage ratio measures the extent to which a company relies on debt financing compared to its equity. A higher ratio indicates a greater reliance on debt, which can enhance returns but also increases financial risk.
For Ashland Inc, the financial leverage ratio has fluctuated over the past eight quarters, ranging from 1.89 to 2.01. The trend shows a gradual increase from 1.89 in March 2022 to 2.01 in March 2022, suggesting a potential shift toward higher debt reliance during this period. However, the ratio has since decreased to 1.92 in December 2023.
This decrease may indicate a more balanced capital structure or a reduction in debt relative to equity. However, it's important to consider the company's specific circumstances and industry benchmarks when assessing the implications of this trend. Overall, the variation in Ashland Inc's financial leverage ratio suggests changes in its capital structure and financing decisions over the observation period.
Peer comparison
Dec 31, 2023