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Ashland (Ashland) Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ashland has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Ashland's Piotroski F-Score or its related term are showing as below:

ASH' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 4

During the past 13 years, the highest Piotroski F-Score of Ashland was 8. The lowest was 4. And the median was 6.


Ashland Piotroski F-Score Historical Data

The historical data trend for Ashland's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ashland Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 4.00 7.00 7.00 4.00

Ashland Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 5.00 4.00 4.00

Competitive Comparison

For the Specialty Chemicals subindustry, Ashland's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ashland Piotroski F-Score Distribution

For the Chemicals industry and Basic Materials sector, Ashland's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Ashland's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was 91 + 50 + -4 + 26 = $163 Mil.
Cash Flow from Operations was 43 + 140 + 123 + 187 = $493 Mil.
Revenue was 603 + 546 + 517 + 473 = $2,139 Mil.
Gross Profit was 197 + 178 + 128 + 98 = $601 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(6259 + 6183 + 6029 + 5939 + 5866) / 5 = $6055.2 Mil.
Total Assets at the begining of this year (Dec22) was $6,259 Mil.
Long-Term Debt & Capital Lease Obligation was $1,448 Mil.
Total Current Assets was $1,365 Mil.
Total Current Liabilities was $414 Mil.
Net Income was 786 + 36 + 57 + 40 = $919 Mil.

Revenue was 604 + 644 + 632 + 525 = $2,405 Mil.
Gross Profit was 220 + 240 + 210 + 165 = $835 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(6549 + 6780 + 6412 + 6213 + 6259) / 5 = $6442.6 Mil.
Total Assets at the begining of last year (Dec21) was $6,549 Mil.
Long-Term Debt & Capital Lease Obligation was $1,411 Mil.
Total Current Assets was $1,724 Mil.
Total Current Liabilities was $464 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ashland's current Net Income (TTM) was 163. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ashland's current Cash Flow from Operations (TTM) was 493. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=163/6259
=0.0260425

ROA (Last Year)=Net Income/Total Assets (Dec21)
=919/6549
=0.14032677

Ashland's return on assets of this year was 0.0260425. Ashland's return on assets of last year was 0.14032677. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Ashland's current Net Income (TTM) was 163. Ashland's current Cash Flow from Operations (TTM) was 493. ==> 493 > 163 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=1448/6055.2
=0.23913331

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=1411/6442.6
=0.21901096

Ashland's gearing of this year was 0.23913331. Ashland's gearing of last year was 0.21901096. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=1365/414
=3.29710145

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=1724/464
=3.71551724

Ashland's current ratio of this year was 3.29710145. Ashland's current ratio of last year was 3.71551724. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Ashland's number of shares in issue this year was 51. Ashland's number of shares in issue last year was 55. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=601/2139
=0.28097242

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=835/2405
=0.34719335

Ashland's gross margin of this year was 0.28097242. Ashland's gross margin of last year was 0.34719335. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=2139/6259
=0.34174788

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=2405/6549
=0.36723164

Ashland's asset turnover of this year was 0.34174788. Ashland's asset turnover of last year was 0.36723164. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ashland has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Ashland  (NYSE:ASH) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Ashland Piotroski F-Score Related Terms

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Ashland (Ashland) Business Description

Traded in Other Exchanges
Address
8145 Blazer Drive, Wilmington, DE, USA, 19808
Ashland Inc is a world-wide specialty materials company that serves a wide range of industrial markets. The company has a business-centric operating model and is organized into four distinct segments: life sciences, personal care, specialty additives, and intermediates. Key customers for the firm include pharmaceutical companies and manufacturers of personal care products, food and beverages, and nutraceuticals and supplements. The life sciences segment derives maximum revenue. Ashland includes only U.S. and Canada in its North America designation and includes Europe, the Middle East and Africa in its Europe designation.
Executives
Eric N Boni officer: Principal Accounting Officer 8145 BLAZER DRIVE, WILMINGTON DE 19808
J Kevin Willis officer: Chief Financial Officer 50 E RIVERCENTER BLVD, COVINGTON KY 41011
James P. Minicucci officer: SVP Strategy, M&A & Portfolio 5474 RINGS ROAD, NORTH TOWER, 5TH FLOOR, DUBLIN OH 43017
Karl R. Bostaph officer: SVP Operations 5474 RINGS ROAD, NORTH TOWER, 5TH FLOOR, DUBLIN OH 43017
Robin E. Lampkin officer: SVP, Gen. Counsel & Secretary 5475 RINGS ROAD, NORTH TOWER, 5TH FLOOR, DUBLIN OH 43017
Sergio Pedreiro director 2 PARK AVENUE, NEW YORK NY 10016
Eileen Drury officer: SVP and Chief Human Resources 8145 BLAZER DRIVE, WILMINGTON DE 19808
Ricky C Sandler director, other: See Remarks 65 EAST 55TH STREET, 25TH FLOOR, NEW YORK NY 10022
Steven D Bishop director ONE PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Suzan F. Harrison director 77 WEST WACKER DRIVE, SUITE 4600, CHICAGO IL 60601
Guillermo Novo director, officer: Chairman and CEO AIR PRODUCTS AND CHEMICALS, INC., 7201 HAMILTON BOULEVARD, ALLENTOWN PA 18195
Winkler Von Mohrenfels Petra Yvonne officer: Sr. VP, GC and Secretary 8145 BLAZER DRIVE, WILMINGTON DE 19808
Min Chong officer: Sr VP & Gen Mgr, Spc Additives 8145 BLAZER DRIVE, WILMINGTON DE 19808
Osama M Musa officer: Sr. Vice President ASHLAND GLOBAL HOLDINGS INC, 1005 ROUTE 202/206, BRIDGEWATER NJ 08807
Swaminathan Ashok Kalyana officer: Sr VP & Gen Mgr, Life Sciences 8145 BLAZER DRIVE, WILMINGTON DE 19808

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