Ingevity Corp (NGVT)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.22 | 3.73 | 3.73 | 3.79 | 3.99 | 4.53 | 4.31 | 4.39 | 4.53 | 4.62 | 4.69 | 4.73 | 5.00 | 4.59 | 4.34 | 4.25 | 4.85 | 4.84 | 4.42 | 4.11 |
| Receivables turnover | 339.38 | — | — | — | 327.39 | — | — | — | 2,228.83 | — | — | — | 8.02 | — | — | — | 8.35 | 7.57 | 6.90 | 9.83 |
| Payables turnover | 10.18 | 7.31 | 7.09 | 7.87 | 7.64 | 7.75 | 7.09 | 8.86 | 8.68 | 8.28 | 8.69 | 8.51 | 9.07 | 11.04 | 12.33 | 9.57 | 10.39 | 9.47 | 8.52 | 7.86 |
| Working capital turnover | 5.39 | 3.82 | 3.70 | 3.69 | 4.22 | 4.42 | 3.56 | 7.73 | 2.93 | 2.92 | 3.06 | 2.99 | 3.00 | 2.83 | 3.11 | 2.52 | 5.21 | 4.36 | 4.42 | 5.78 |
Ingevity Corp's activity ratios indicate the efficiency of the company in managing its operational assets and liabilities.
1. Inventory Turnover: The trend in inventory turnover ratios shows a slight decrease from Q4 2022 to Q3 2023, with the ratio ranging between 3.04 and 3.95. This suggests that the company is able to sell and replenish its inventory approximately 3 to 4 times a year.
2. Receivables Turnover: The receivables turnover ratio has seen fluctuations during the same period, ranging from 6.70 to 9.30. This indicates the effectiveness of Ingevity Corp in collecting sales revenue from customers, with a higher ratio indicating faster collection.
3. Payables Turnover: The payables turnover ratio has shown variability, ranging from 5.77 to 7.70. This implies that the company is able to settle its payable obligations between approximately 6 to 8 times a year.
4. Working Capital Turnover: The working capital turnover has also exhibited fluctuations, with a range of 3.69 to 8.03. This ratio reflects how efficiently the company generates revenue from its working capital, with a higher ratio indicating better utilization of working capital.
Overall, the analysis of Ingevity Corp's activity ratios suggests that the company has been efficient in managing its inventory, receivables, payables, and working capital to support its operational activities and generate revenue.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 69.91 | 97.88 | 97.94 | 96.38 | 91.55 | 80.63 | 84.75 | 83.16 | 80.63 | 78.99 | 77.90 | 77.20 | 73.02 | 79.55 | 84.08 | 85.81 | 75.33 | 75.37 | 82.66 | 88.91 |
| Days of sales outstanding (DSO) | days | 1.08 | — | — | — | 1.11 | — | — | — | 0.16 | — | — | — | 45.52 | — | — | — | 43.72 | 48.24 | 52.93 | 37.14 |
| Number of days of payables | days | 35.86 | 49.94 | 51.51 | 46.38 | 47.77 | 47.09 | 51.49 | 41.19 | 42.05 | 44.08 | 41.98 | 42.91 | 40.26 | 33.07 | 29.61 | 38.15 | 35.13 | 38.55 | 42.84 | 46.45 |
Ingevity Corp's activity ratios provide insight into the efficiency of its operations related to inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH): The trend in DOH shows how many days, on average, the company holds inventory before selling it. Ingevity Corp's DOH has been fluctuating over the quarters, with Q2 and Q3 2023 recording higher levels exceeding 100 days, indicating that the company may be holding excess inventory. However, in more recent quarters, the DOH has decreased, which could suggest improved inventory management efficiency.
2. Days of Sales Outstanding (DSO): DSO measures how long it takes for the company to collect payments from its customers. Ingevity Corp's DSO has also been varying, but the trend seems to be decreasing over the past quarters. Lower DSO values indicate that the company is collecting payments faster, which is a positive sign of efficient accounts receivable management.
3. Number of Days of Payables: This ratio reflects how long it takes for the company to pay its suppliers and vendors. Ingevity Corp's number of days of payables has shown some fluctuation as well. When the number of days of payables increases, it could indicate that the company is taking longer to pay its bills, potentially managing its cash flow or negotiating better payment terms with suppliers.
Overall, Ingevity Corp's activity ratios suggest some variability in its operational efficiency over the quarters. Monitoring these ratios regularly will help the company identify areas for improvement in managing inventory, accounts receivable, and accounts payable to enhance overall operational efficiency.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 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 | 1.94 | 1.97 | 1.91 | 2.36 |
| Total asset turnover | 0.61 | 0.59 | 0.59 | 0.58 | 0.59 | 0.67 | 0.62 | 0.57 | 0.54 | 0.57 | 0.56 | 0.53 | 0.52 | 0.53 | 0.56 | 0.55 | 0.60 | 0.60 | 0.57 | 0.70 |
Ingevity Corp's fixed asset turnover has been relatively stable over the past eight quarters, ranging from 2.02 to 2.25. This ratio indicates that the company generates between 2.02 to 2.25 in sales for every dollar invested in fixed assets. A higher fixed asset turnover ratio generally indicates that the company is effectively utilizing its fixed assets to generate revenue.
On the other hand, Ingevity Corp's total asset turnover has also exhibited stability over the same period, fluctuating between 0.59 to 0.69. This ratio reflects the company's ability to generate sales in relation to its total assets. A lower total asset turnover may suggest that the company is not efficiently utilizing its assets to generate revenue.
Overall, the consistent performance of Ingevity Corp's fixed asset turnover and total asset turnover ratios indicates that the company has been effectively managing its assets to generate sales. However, further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's long-term activity efficiency.