Ingevity Corp (NGVT)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 1,697,100 | 1,612,400 | 1,335,600 | 1,091,900 | 944,600 |
| Inventory | US$ in thousands | 226,800 | 308,800 | 335,000 | 241,200 | 189,000 |
| Inventory turnover | 7.48 | 5.22 | 3.99 | 4.53 | 5.00 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $1,697,100K ÷ $226,800K
= 7.48
Ingevity Corp's inventory turnover has shown fluctuating trends over the past five years. The inventory turnover ratio decreased from 5.00 in December 2020 to 4.53 in December 2021, indicating a slightly lower efficiency in converting inventory into sales. Subsequently, the ratio further decreased to 3.99 by December 2022, suggesting potential challenges in managing inventory levels.
However, there was a notable improvement in December 2023, with the inventory turnover ratio increasing to 5.22, indicating a more efficient management of inventory during that period. This trend continued to improve significantly in December 2024, with the ratio surging to 7.48, reflecting a substantial increase in the speed at which Ingevity Corp is selling its inventory.
Overall, while there were fluctuations in the inventory turnover ratio over the analyzed period, the increasing trend in the most recent years indicates a possibly more effective inventory management strategy, potentially resulting in improved liquidity and profitability for the company.
Peer comparison
Dec 31, 2024