Ashland Global Return On Asset vs. Operating Margin

ASH Stock  USD 78.06  0.15  0.19%   
Taking into consideration Ashland Global's profitability measurements, Ashland Global's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Ashland Global's ability to earn profits and add value for shareholders. As of now, Ashland Global's Operating Cash Flow Sales Ratio is increasing as compared to previous years. The Ashland Global's current Days Of Sales Outstanding is estimated to increase to 44.19, while Sales General And Administrative To Revenue is projected to decrease to 0.12. As of now, Ashland Global's Net Income From Continuing Ops is increasing as compared to previous years. The Ashland Global's current Non Operating Income Net Other is estimated to increase to about 13.3 M, while Accumulated Other Comprehensive Income is projected to decrease to (470.4 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.180.2925
Way Down
Pretty Stable
For Ashland Global profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ashland Global to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ashland Global Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ashland Global's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ashland Global Holdings over time as well as its relative position and ranking within its peers.
  

Ashland Global's Revenue Breakdown by Earning Segment

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Is Specialty Chemicals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ashland Global. If investors know Ashland will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ashland Global listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.88)
Dividend Share
1.58
Earnings Share
3.95
Revenue Per Share
42.26
Quarterly Revenue Growth
0.01
The market value of Ashland Global Holdings is measured differently than its book value, which is the value of Ashland that is recorded on the company's balance sheet. Investors also form their own opinion of Ashland Global's value that differs from its market value or its book value, called intrinsic value, which is Ashland Global's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ashland Global's market value can be influenced by many factors that don't directly affect Ashland Global's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ashland Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ashland Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ashland Global's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Ashland Global Holdings Operating Margin vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Ashland Global's current stock value. Our valuation model uses many indicators to compare Ashland Global value to that of its competitors to determine the firm's financial worth.
Ashland Global Holdings is rated below average in return on asset category among its peers. It also is rated below average in operating margin category among its peers reporting about  7.83  of Operating Margin per Return On Asset. As of now, Ashland Global's Operating Profit Margin is decreasing as compared to previous years. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ashland Global's earnings, one of the primary drivers of an investment's value.

Ashland Operating Margin vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Ashland Global

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0066
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.

Ashland Global

Operating Margin

 = 

Operating Income

Revenue

X

100

 = 
0.05 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.

Ashland Operating Margin Comparison

Ashland Global is currently under evaluation in operating margin category among its peers.

Ashland Global Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Ashland Global, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ashland Global will eventually generate negative long term returns. The profitability progress is the general direction of Ashland Global's change in net profit over the period of time. It can combine multiple indicators of Ashland Global, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-448 M-470.4 M
Operating Income-26 M-24.7 M
Income Before Tax-24 M-22.8 M
Total Other Income Expense NetM2.1 M
Net Income169 M258.9 M
Income Tax Expense-223 M-211.8 M
Net Income Applicable To Common Shares160.2 M227.4 M
Net Income From Continuing Ops199 M208.9 M
Interest Income10 M9.5 M
Net Interest Income-45 M-47.2 M
Non Operating Income Net Other12.7 M13.3 M
Change To Netincome-113.4 M-119.1 M
Net Income Per Share 3.45  3.36 
Income Quality 2.73  3.08 
Net Loss(7.04)(6.69)

Ashland Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Ashland Global. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ashland Global position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ashland Global's important profitability drivers and their relationship over time.

Use Ashland Global in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ashland Global position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ashland Global will appreciate offsetting losses from the drop in the long position's value.

Ashland Global Pair Trading

Ashland Global Holdings Pair Trading Analysis

The ability to find closely correlated positions to Ashland Global could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ashland Global when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ashland Global - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ashland Global Holdings to buy it.
The correlation of Ashland Global is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ashland Global moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ashland Global Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ashland Global can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Ashland Global position

In addition to having Ashland Global in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Convertibles Funds Thematic Idea Now

Convertibles Funds
Convertibles Funds Theme
Funds or Etfs that invest in debt that is expected to be converted into a predetermined amount of the company equity at some future date. The Convertibles Funds theme has 13 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Convertibles Funds Theme or any other thematic opportunities.
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When determining whether Ashland Global Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Ashland Global's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Ashland Global Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Ashland Global Holdings Stock:
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You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
To fully project Ashland Global's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ashland Global Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ashland Global's income statement, its balance sheet, and the statement of cash flows.
Potential Ashland Global investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Ashland Global investors may work on each financial statement separately, they are all related. The changes in Ashland Global's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ashland Global's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.