Ashland Global Holdings Inc (ASH)

Solvency ratios

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
Debt-to-assets ratio 0.24 0.23 0.22 0.23 0.22 0.22 0.21 0.21 0.20 0.20 0.20 0.24 0.24 0.23 0.24 0.24 0.23 0.22 0.22 0.21
Debt-to-capital ratio 0.32 0.31 0.30 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
Debt-to-equity ratio 0.47 0.45 0.42 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
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

Ashland Global Holdings Inc has maintained a relatively stable solvency position over the past several quarters based on its solvency ratios. The debt-to-assets ratio has shown a slight downward trend, indicating that the company has been able to reduce its debt relative to its total assets. Similarly, the debt-to-capital ratio and debt-to-equity ratio have also decreased slightly, showing an improvement in the company's capital structure and reduced reliance on debt financing.

However, the financial leverage ratio has been somewhat volatile, reaching its peak in the fourth quarter of 2021 before trending downwards. This could suggest that the company may have had some fluctuations in its financial structure and leverage levels over the period analyzed.

Overall, the solvency ratios indicate that Ashland Global Holdings Inc has been managing its debt levels effectively and is maintaining a healthy balance between debt and equity in its capital structure.

Coverage ratios

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
Interest coverage -0.46 -1.17 0.95 2.02 2.97 4.14 4.94 5.21 5.29 4.72 3.77 3.04 2.69 0.65 0.68 -5.18 -5.12 -3.25 -3.30 0.96

Interest coverage ratio is an important financial metric that indicates a company's ability to repay its interest obligations with its operating income. A higher interest coverage ratio signifies a stronger ability to meet interest payments.

Analyzing Ashland Global Holdings Inc's interest coverage over the past few quarters, we observe fluctuations in the ratio. A negative interest coverage ratio, such as -0.46 and -1.17, indicates that the company's operating income is insufficient to cover its interest expenses during those periods, raising concerns about its financial health.

However, the interest coverage improved in subsequent quarters, reaching positive figures like 0.95, 2.02, 2.97, 4.14, and 4.94. These positive ratios suggest that the company's operating income became more capable of covering its interest obligations, reflecting a stronger financial position.

The interest coverage ratio peaked at 5.29 in Sep 30, 2022, indicating a robust ability to meet interest payments from operating income. However, the ratio declined slightly in the following quarters but remained generally above 1, reflecting an improved ability to handle interest expenses.

It is noteworthy that there were a few quarters with significantly low interest coverage ratios, such as -5.18, -5.12, and -3.25, suggesting potential financial strain during those periods. These low ratios raise red flags as they indicate a risk of defaulting on interest payments due to inadequate operating income.

Overall, the trend of Ashland Global Holdings Inc's interest coverage ratio shows variability but demonstrates a general improvement over the analyzed period, with the company gradually enhancing its ability to cover interest expenses with operating income. Investors and creditors should continue monitoring the interest coverage ratio to assess the company's financial stability and debt servicing capability.