showing the working

← Ashland

The business behind the dividend

MeasureASHMedianFormula
Return on equity-44.4%10.6%Net income ÷ shareholders’ equity
Return on capital employed-23.6%10.0%Operating income ÷ (equity + total debt)
Owner earnings$-706.00m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$36.00m$155.08mOperating cash flow − capital expenditure
Operating margin-42.5%14.3%Operating income ÷ revenue
Net margin-46.3%10.1%Net income ÷ revenue
Debt to equity0.73x0.73xTotal debt ÷ shareholders’ equity
Interest cover-12.70x4.22xOperating income ÷ interest expense
Current ratio2.85x1.55xCurrent assets ÷ current liabilities
Long-term debt to working capital1.77x1.88xLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-21.2%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure2025202420232022202120202019201820172016Median
Return on equity-44.4%5.9%5.7%28.8%8.0%-16.7%14.1%3.3%0.0%-0.9%3.3%
Return on capital employed-23.6%-0.6%3.9%7.4%4.4%-10.0%1.7%1.8%0.8%-0.9%0.8%
Operating margin-42.5%-1.2%7.9%13.9%9.1%-22.9%4.0%3.9%2.1%-1.7%2.1%
Net margin-46.3%8.0%8.1%38.8%10.4%-25.2%23.5%4.4%0.0%-1.0%4.4%
Debt to equity0.73x0.47x0.42x0.39x0.58x0.52x0.42x0.67x0.76x0.70x0.52x
Current ratio2.85x2.44x3.30x3.20x1.84x1.90x1.89x1.59x1.97x2.33x1.97x
Cash conversion2.73x1.65x0.21x2.12x0.28x2.11x1.65x

How it compares in industrials

Among the 289 industrials companies here measured on free cash flow, Ashland pays out less than 7 of them. The median for that group is 24.4%, against this company’s 211.1%.

Closest on free cash flow

Same sector and same denominator, so the figures are comparable. All 348 in industrials →