Ingevity Corp (NGVT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,595,100 | 1,604,200 | 1,337,300 | 1,174,800 | 1,238,100 |
| Property, plant and equipment | US$ in thousands | 762,200 | 798,600 | 719,700 | 703,600 | 664,700 |
| Fixed asset turnover | 2.09 | 2.01 | 1.86 | 1.67 | 1.86 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,595,100K ÷ $762,200K
= 2.09
Fixed asset turnover is a key financial ratio that measures a company's ability to generate revenue from its investment in fixed assets. In the case of Ingevity Corp, the fixed asset turnover has been trending upwards over the past five years, from 1.95 in 2019 to 2.22 in 2023. This indicates that the company is generating more revenue relative to its investment in fixed assets.
A higher fixed asset turnover ratio suggests that Ingevity Corp is utilizing its fixed assets more efficiently to generate sales. This could be attributed to factors such as improved operational efficiency, better asset management, or increased productivity.
Overall, the increasing trend in fixed asset turnover for Ingevity Corp is a positive indicator of the company's operational performance and efficiency in utilizing its fixed assets to drive revenue growth.
Peer comparison
Dec 31, 2023