Ashland Global Holdings Inc (ASH)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,645,000 | 5,747,000 | 5,948,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,868,000 | 2,967,000 | 3,134,000 | 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 |
| Financial leverage ratio | 1.97 | 1.94 | 1.90 | 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 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,645,000K ÷ $2,868,000K
= 1.97
The financial leverage ratio for Ashland Global Holdings Inc has shown fluctuations over the past years, ranging from 1.89 to 2.40. The ratio indicates the level of debt used by the company to finance its operations and signifies the proportion of a company's assets that are financed by debt rather than equity.
A higher financial leverage ratio suggests that a company is relying more on debt to fund its operations, which can amplify returns in favorable conditions but also increase risks during downturns. On the other hand, a lower ratio indicates a more conservative approach to debt financing.
In the case of Ashland Global Holdings Inc, the trend in the financial leverage ratio has been somewhat volatile, with some fluctuations observed. The ratio peaked at 2.40 in December 2021, reflecting a relatively higher level of debt usage at that point. Subsequently, the ratio decreased and then experienced some fluctuations between 1.89 and 2.01 before rising again to 1.97 in September 2024.
Overall, the financial leverage ratio of Ashland Global Holdings Inc suggests a varying degree of reliance on debt financing over the analyzed periods. It is essential for investors and stakeholders to monitor this ratio alongside other financial metrics to assess the company's financial health and risk profile accurately.
Peer comparison
Sep 30, 2024