Ingevity Corp (NGVT)

Short-term

Turnover ratios

Ingevity Corp's activity ratios provide insights into how efficiently the company is managing its assets and liabilities to generate revenue.

1. Inventory Turnover:
- Ingevity Corp's inventory turnover ratio has fluctuated over the years, starting at 5.00 in December 2020 and reaching a peak of 7.48 in December 2024.
- This ratio indicates how many times inventory is sold and replaced within a specific period, showing an increasing trend which implies improved efficiency in managing inventory levels.

2. Receivables Turnover:
- The receivables turnover ratio for Ingevity Corp has shown significant volatility, with a substantial increase from 7.75 in December 2020 to 2,228.83 in December 2021, before stabilizing at 779.00 in December 2024.
- These fluctuations suggest variations in the collection efficiency of the company regarding accounts receivable, with higher ratios indicating faster collection and potentially better credit management practices.

3. Payables Turnover:
- Ingevity Corp's payables turnover ratio has been relatively stable, with values ranging from 7.64 to 17.96 between December 2020 and December 2024.
- A higher payables turnover ratio indicates that the company is managing its payables effectively, possibly negotiating favorable credit terms and optimizing cash flow.

4. Working Capital Turnover:
- The working capital turnover ratio for Ingevity Corp has shown a consistent increasing trend, from 2.90 in December 2020 to 6.12 in December 2024.
- This ratio reflects how efficiently the company is utilizing its working capital to generate sales, with higher values suggesting improved operational efficiency and effective utilization of resources.

Overall, Ingevity Corp's activity ratios demonstrate a mix of fluctuations and improvements in asset and liability management over the years, indicating potential enhancements in operational efficiency and financial performance.

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Average number of days

Ingevity Corp's Days of Inventory on Hand (DOH) has shown a fluctuating trend over the years, starting at 73.03 days in 2020, peaking at 91.55 days in 2022, and then decreasing to 48.78 days in 2024. This indicates that the company has varied in its inventory management efficiency during this period.

The Days of Sales Outstanding (DSO) for Ingevity Corp experienced a significant reduction from 47.10 days in 2020 to only 0.47 days in 2024. This suggests that the company has improved its ability to collect payments from customers promptly, resulting in a more efficient credit management process over the years.

In terms of the Number of Days of Payables, Ingevity Corp has generally managed its payables well, with a slight increase from 40.26 days in 2020 to 42.05 days in 2021, followed by a decrease to 20.32 days in 2024. This indicates that the company may be optimizing its payment terms and managing its outstanding payables effectively.

Overall, the activity ratios reveal that Ingevity Corp has made notable improvements in its inventory management and accounts receivable collection processes, while also maintaining effective management of its payables over the analyzed years.

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Long-term

Ingevity Corp's long-term activity ratios indicate an improvement in the efficiency of its asset utilization over the years.

1. Fixed asset turnover has shown a continuous increasing trend from 1.67 in 2020 to 2.13 in 2024. This indicates that the company is generating more revenue per dollar invested in its fixed assets, reflecting improved efficiency in utilizing its long-term assets to generate sales.

2. Total asset turnover has also displayed a positive trajectory, rising from 0.50 in 2020 to 0.69 in 2024. This suggests that the company is generating more sales relative to its total assets over the years.

Overall, the increasing values of both fixed asset turnover and total asset turnover ratios indicate that Ingevity Corp has been effectively utilizing its assets to generate revenue over the long term, which can be a positive signal for investors and stakeholders interested in the company's operational efficiency and financial performance.