Cash conversion efficiency remains erratic, with OCF/NI ratios swinging from -10.42 to 19.33, complicating the company's ability to fund its aggressive capital return program, which included $150 million in share repurchases during 2024Q4.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 414M | 94M | 411M | 243M | -213M | 560M | 203M | 241M | 297M | 383M | 678M | 333M | 643M | 733M | 354M | 245M | 507M | 1.02B | 470M | 195M | 345M | -11M | 190M | 529M | 210M | 915M | 444M | 390M | 311M | 1.05B | 767M |
| Operating CF Margin % | - | 5.15% | 19.45% | 11.09% | -8.91% | 26.53% | 10.07% | 11.22% | 11.47% | 16.59% | 22.46% | 9.74% | 10.5% | 12.03% | 5.47% | 3.77% | 8.83% | 12.65% | 5.61% | 2.5% | 4.77% | -0.15% | 3.06% | 6.69% | 2.76% | 10.71% | 5.58% | 5.73% | 4.76% | 8.18% | 6.77% |
| Operating CF Growth % | 5385.36% | -77.13% | 69.14% | 214.08% | -138.04% | 175.86% | -15.77% | -18.86% | -22.45% | -43.51% | 103.6% | -48.21% | -12.28% | 107.06% | 44.49% | -51.68% | -50.54% | 118.09% | 141.03% | -43.48% | 3236.36% | -105.79% | -64.08% | 151.9% | -77.05% | 106.08% | 13.85% | 25.4% | -70.38% | 36.9% | 53.4% |
| Net Income | -706M | -822M | 199M | 168M | 181M | 220M | -508M | 505M | 114M | 28M | -28M | 309M | 233M | 683M | 12M | 414M | -53M | 78M | 167M | 230M | 407M | 2B | 378M | 94M | 115M | 406M | 74M | 290M | 203M | 288M | 211M |
| Depreciation & Amortization | 291M | 237M | 274M | 243M | 241M | 244M | 235M | 277M | 278M | 301M | 302M | 341M | 393M | 425M | 423M | 299M | 304M | 329M | 145M | 133M | 111M | 100M | 98M | 204M | 220M | 250M | 237M | 228M | 181M | 572M | 299M |
| Stock-Based Compensation | 13M | 14M | 15M | 22M | 18M | 15M | 14M | 21M | 44M | 20M | 30M | 30M | 34M | 30M | 28M | 16M | 14M | 9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 11M | 73M | -302M | -32M | -35M | -26M | -42M | 20M | -100M | -30M | -29M | -57M | -294M | 194M | -154M | -57M | -67M | 12M | 44M | 22M | -1M | -500M | 104M | 71M | -119M | 157M | 111M | 102M | 60M | 33M | -9M |
| Other Non-Cash Items | 1.41B | 783M | -2M | -100M | -347M | 27M | 495M | -453M | -49M | 117M | 360M | -36M | 364M | -486M | 554M | 8M | 420M | 136M | -20M | -34M | -31M | -1.38B | -142M | 190M | 56M | -4M | 47M | -2M | -138M | 117M | 141M |
| Working Capital Changes | 136M | -191M | 227M | -58M | -271M | 80M | 9M | -129M | 10M | -53M | 43M | -254M | -87M | -113M | -509M | -435M | -111M | 461M | 134M | -156M | -141M | -232M | -248M | -30M | -62M | 106M | -25M | -228M | 5M | 40M | 125M |
| Change in Receivables | 0 | -3M | 96M | 58M | 72M | 72M | 2M | 0 | 0 | 0 | 77M | 211M | -16M | 43M | 20M | -40M | -202M | 405M | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | -28M | 79M | -7M | 41M | 41M | 64M | 0 | 0 | 0 | 48M | 39M | -4M | 106M | -105M | -133M | -119M | 147M | 126M | -74M | -56M | -82M | -14M | 15M | 12M | 5M | 0 | -26M | -21M | 17M | -3M |
| Change in Payables | 0 | -63M | 0 | 0 | 0 | 3M | 0 | 0 | 0 | 0 | 0 | -229M | -67M | -5M | -111M | -65M | 196M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -93M | -3M | -51M | -109M | 1.56B | -381M | 8M | 849M | -202M | -1.12B | -332M | -393M | 1.44B | -320M | -242M | -1.15B | 3M | -2.12B | -418M | -102M | 962M | 2.39B | -141M | -97M | -174M | -274M | -701M | -198M | -585M | -440M | -563M |
| Capital Expenditures | -71M | -98M | -137M | -170M | -113M | -105M | -133M | -154M | -157M | -199M | -231M | -220M | -248M | -264M | -242M | -201M | -206M | -174M | -205M | -154M | -175M | -180M | -210M | -110M | -185M | -205M | -232M | -320M | -468M | -431M | -510M |
| CapEx % of Revenue | 3.92% | 5.37% | 6.48% | 7.76% | 4.73% | 4.97% | 6.6% | 7.17% | 6.06% | 8.62% | 7.65% | 6.43% | 4.05% | 4.33% | 3.74% | 3.09% | 3.59% | 2.15% | 2.45% | 1.98% | 2.42% | 2.47% | 3.38% | 1.39% | 2.43% | 2.4% | 2.91% | 4.71% | 7.16% | 3.36% | 4.5% |
| Acquisitions | 0 | 16M | 26M | 0 | 0 | -304M | 9M | -2M | -7M | -662M | -67M | 131M | 92M | -11M | 21M | -1.93B | 41M | -1.97B | -103M | -75M | -183M | 3.17B | -5M | -5M | -15M | -91M | -590M | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -22M | 15M | 60M | 61M | 1.67B | 28M | 132M | 999M | -36M | -273M | -38M | -315M | 1.61B | -45M | -72M | 969M | 18M | -48M | 10M | -69M | 1.27B | -198M | 74M | 18M | 26M | 22M | 121M | 46M | -210M | 23M | -88M |
| Cash from Financing | -180M | -179M | -479M | -371M | -896M | -426M | 9M | -1.15B | -368M | 119M | -407M | -30M | -1.03B | -592M | -317M | 1.21B | -435M | 573M | -70M | -1.02B | -472M | -1.64B | -29M | -299M | -182M | -472M | 214M | -116M | 58M | -565M | -179M |
| Debt Issued (Net) | -100M | 0 | -16M | 16M | -615M | 107M | 93M | -875M | -296M | 243M | -1.09B | 465M | 11M | -329M | -260M | 1.41B | -411M | 585M | -5M | -13M | -13M | -1.59B | -60M | -226M | -75M | -362M | 376M | 39M | 178M | -376M | -91M |
| Equity Issued (Net) | -2M | -100M | -380M | -300M | -200M | -450M | 0 | -200M | 0 | -15M | -500M | -397M | -954M | -150M | 0 | -68M | 0 | 0 | 3M | -269M | -387M | 15M | 108M | 2M | -31M | -34M | -84M | -74M | -36M | 32M | 15M |
| Dividends Paid | -76M | -76M | -78M | -76M | -70M | -70M | -66M | -64M | -60M | -77M | -97M | -98M | -103M | -88M | -63M | -51M | -35M | -22M | -69M | -743M | -78M | -79M | -77M | -75M | -76M | -76M | -78M | -81M | -84M | -86M | -89M |
| Share Repurchases | 0 | -100M | -380M | -300M | -200M | -450M | 0 | -200M | -10M | -15M | -500M | -397M | -954M | -150M | 0 | -71M | 0 | 0 | 0 | -288M | -405M | -100M | 0 | 0 | -42M | -49M | -89M | -228M | -46M | -3M | 0 |
| Other Financing | -2M | -3M | -5M | -11M | -11M | -13M | -18M | -10M | -12M | -32M | 1.28B | 0 | 12M | -25M | 6M | -78M | 11M | 10M | 1M | 9M | 6M | 20M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -135M | -14M |
| Net Change in Cash | 206M | -85M | -117M | -229M | 436M | -244M | 222M | -62M | -272M | -451M | -69M | -136M | 1.05B | -177M | -214M | 320M | 65M | -534M | -11M | -923M | 835M | 742M | 20M | 133M | -146M | 169M | -43M | 76M | -216M | 164M | 25M |
| Free Cash Flow | 343M | -4M | 274M | 73M | -326M | 455M | 70M | 87M | 140M | 166M | 447M | 69M | 395M | 419M | 112M | 44M | 314M | 851M | 265M | 41M | 170M | -191M | -20M | 419M | 25M | 710M | 212M | 70M | -157M | 857M | 257M |
| FCF Margin % | 18.96% | -0.22% | 12.97% | 3.33% | -13.63% | 21.55% | 3.47% | 4.05% | 5.41% | 7.19% | 14.81% | 2.02% | 6.45% | 6.88% | 1.73% | 0.68% | 5.47% | 10.5% | 3.16% | 0.53% | 2.35% | -2.62% | -0.32% | 5.3% | 0.33% | 8.31% | 2.66% | 1.03% | -2.4% | 6.68% | 2.27% |
| FCF Growth % | 939.39% | -101.46% | 275.34% | 122.39% | -171.65% | 550% | -19.54% | -37.86% | -15.66% | -62.86% | 547.83% | -82.53% | -5.73% | 274.11% | 154.55% | -85.99% | -63.1% | 221.13% | 546.34% | -75.88% | 189.01% | -855% | -104.77% | 1576% | -96.48% | 234.91% | 202.86% | 144.59% | -118.32% | 233.46% | 358.93% |
| FCF per Share | 7.46 | -0.09 | 5.48 | 1.35 | -5.82 | 7.46 | 1.15 | 1.38 | 2.19 | 2.68 | 7.10 | 1.00 | 5.06 | 5.24 | 1.40 | 0.55 | 3.97 | 11.66 | 4.17 | 0.64 | 2.36 | -2.56 | -0.28 | 6.15 | 0.36 | 10.10 | 2.97 | 0.93 | -2.03 | 11.60 | 3.96 |
| FCF Conversion (FCF/Net Income) | -0.49x | -0.11x | 2.43x | 1.37x | -0.23x | 2.55x | -0.40x | 0.48x | 2.61x | 383.00x | -23.38x | 1.08x | 2.76x | 1.07x | 13.62x | 0.59x | 3.60x | 14.44x | 2.81x | 0.85x | 0.85x | -0.01x | 0.50x | 7.05x | 1.79x | 2.19x | 6.34x | 1.34x | 1.53x | 3.76x | 3.64x |
| Interest Paid | 0 | 54M | 52M | 53M | 56M | 62M | 77M | 124M | 126M | 132M | 162M | 149M | 154M | 182M | 202M | 109M | 118M | 198M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 33M | 53M | 63M | 406M | 1M | 91M | 67M | 77M | 79M | 108M | 226M | 88M | 69M | 88M | 97M | 86M | 49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Legacy liability cash volatility
As reported in recent financial filings, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -10.42 to 19.33, indicating that reported net income is a poor proxy for the company's actual ability to generate recurring cash from operations.
The extreme divergence between net income and operating cash flow suggests that significant non-cash charges, likely related to legacy environmental and legal liabilities, are distorting the bottom line. Investors should interpret the cash flow statement as the primary indicator of operational health, as the net income figure is frequently rendered non-representative by these recurring, non-operational accounting adjustments.
Based on quarterly cash flow data, free cash flow margins have demonstrated significant inconsistency, ranging from a negative 15.6% to a peak of 31.9%, which highlights the difficulty in maintaining a predictable cash generation profile during the company's ongoing transition toward a specialty-focused business model.
The volatility in FCF margins appears to be driven by both the cyclical nature of the remaining intermediates business and the lumpy timing of cash outflows related to legacy obligations. This lack of FCF stability warrants caution, as it suggests that the company's cash-generating engine is not yet fully decoupled from its historical industrial baggage.
According to recent SEC filings, working capital changes have been a primary driver of cash flow variance, with quarterly fluctuations as large as $167 million, suggesting that management's ability to optimize inventory and receivables is currently secondary to broader, potentially external, shifts in supply chain demand.
The sharp reversals in working capital, such as the $98 million outflow in 2026Q2 following a $98 million inflow in 2026Q1, indicate that the company's cash position is highly sensitive to inventory management and customer payment cycles. This volatility may imply that the company is struggling to align its production schedules with the actual demand patterns of its specialty chemical end-markets.
As evidenced by historical cash flow statements, Ashland has prioritized significant share repurchases and consistent dividend payments, with buybacks totaling $150 million in 2024Q4 alone, despite the underlying volatility in operational cash generation and the ongoing need to fund legacy environmental remediation and restructuring efforts.
The decision to return capital to shareholders while simultaneously managing a massive portfolio transformation suggests a management focus on supporting the stock price during the transition. However, investors should monitor whether this capital allocation strategy may eventually limit the company's flexibility to pursue necessary bolt-on acquisitions in the high-margin Life Sciences segment.
Quick answers to the most common questions about buying ASH stock.
Ashland Inc. (ASH) generated $94.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Ashland Inc. (ASH) reported negative free cash flow of $4.0M in 2025, indicating capital requirements exceeded cash from operations.
Ashland Inc. (ASH) spent $98.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Ashland Inc. (ASH) returned $76.0M to shareholders via cash dividends and spent $100.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.