Ingevity Corp (NGVT)
Fixed asset turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,402,200 | 1,382,300 | 1,451,400 | 1,542,600 | 1,595,100 | 1,639,900 | 1,675,900 | 1,614,000 | 1,604,200 | 1,566,500 | 1,461,300 | 1,399,800 | 1,337,300 | 1,381,100 | 1,336,000 | 1,248,200 | 1,215,700 | 1,193,500 | 1,220,200 | 1,300,800 |
| Property, plant and equipment | US$ in thousands | 658,900 | 671,300 | 722,200 | 726,500 | 762,200 | 800,000 | 800,600 | 804,600 | 798,600 | 720,700 | 717,400 | 719,000 | 719,700 | 701,200 | 699,500 | 697,900 | 703,600 | 685,300 | 658,300 | 659,700 |
| Fixed asset turnover | 2.13 | 2.06 | 2.01 | 2.12 | 2.09 | 2.05 | 2.09 | 2.01 | 2.01 | 2.17 | 2.04 | 1.95 | 1.86 | 1.97 | 1.91 | 1.79 | 1.73 | 1.74 | 1.85 | 1.97 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,402,200K ÷ $658,900K
= 2.13
The fixed asset turnover ratio measures how efficiently a company is generating revenue from its investments in fixed assets. In the case of Ingevity Corp, the fixed asset turnover has shown a generally increasing trend from March 31, 2020, to December 31, 2024.
The ratio started at 1.97 on March 31, 2020, and fluctuated slightly over the next few quarters, reaching a low of 1.73 on December 31, 2020. However, it then started to increase steadily, indicating that Ingevity was generating more revenue for each dollar invested in fixed assets.
By the end of the period on December 31, 2024, the fixed asset turnover ratio had reached its highest point of 2.13. This suggests that Ingevity was effectively utilizing its fixed assets to drive revenue growth and improve operational efficiency over the years.
Overall, the increasing trend in the fixed asset turnover ratio for Ingevity Corp indicates a positive picture of how efficiently the company is managing its fixed assets to generate revenue.
Peer comparison
Dec 31, 2024