Ingevity Corp (NGVT)
Payables 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 |
| Payables | US$ in thousands | 94,500 | 158,400 | 174,800 | 125,800 | 104,200 |
| Payables turnover | 17.96 | 10.18 | 7.64 | 8.68 | 9.07 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $1,697,100K ÷ $94,500K
= 17.96
The payables turnover ratio measures how efficiently Ingevity Corp is managing its payables by calculating how many times the company pays off its suppliers during a specific period.
Analyzing the data provided:
- In December 31, 2020, the payables turnover was 9.07, indicating that Ingevity Corp paid its suppliers approximately 9 times during that year.
- In December 31, 2021, the payables turnover decreased to 8.68, suggesting a slight decrease in the frequency of payments to suppliers.
- By December 31, 2022, the payables turnover ratio further decreased to 7.64, which might indicate a slower payment to suppliers.
- However, there was a significant improvement by December 31, 2023, with a payables turnover of 10.18, suggesting the company increased its payment frequency to suppliers.
- By December 31, 2024, the payables turnover ratio spiked to 17.96, indicating a substantial increase in the frequency of paying off suppliers compared to previous years.
Overall, the trend in the payables turnover ratio for Ingevity Corp shows varying levels of efficiency in managing its payables over the years, with fluctuations observed in the frequency of payments to suppliers. The increase in the payables turnover ratio in 2023 and 2024 suggests a more efficient management of payables by the company during those periods.
Peer comparison
Dec 31, 2024