Ingevity Corp (NGVT)
Total 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 |
| Total assets | US$ in thousands | 2,623,300 | 2,736,500 | 2,469,000 | 2,334,500 | 2,141,700 |
| Total asset turnover | 0.61 | 0.59 | 0.54 | 0.50 | 0.58 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,595,100K ÷ $2,623,300K
= 0.61
The total asset turnover of Ingevity Corp has shown a fluctuating trend over the past five years. The ratio measures the efficiency of the company in generating sales revenue relative to its total assets.
In 2023, the total asset turnover ratio improved to 0.65, indicating that the company generated $0.65 in sales for every $1 in total assets. This represents an increase from the previous year's ratio of 0.61 in 2022. The upward trend suggests that Ingevity Corp was more effective in utilizing its assets to drive revenue generation in 2023.
Comparing to earlier years, in 2021 and 2020, the total asset turnover ratios were 0.56 and 0.52, respectively. These ratios show that the company's efficiency in asset utilization was lower during those years compared to more recent periods.
However, it is worth noting that in 2019, Ingevity Corp had a total asset turnover ratio of 0.60, which was higher than the ratios in 2021 and 2020 but lower than the most recent ratio in 2023.
Overall, the improving trend in total asset turnover indicates that Ingevity Corp has been enhancing its efficiency in generating sales revenue in relation to its total assets in recent years, which is a positive sign for the company's operational effectiveness and financial performance.
Peer comparison
Dec 31, 2023