Ingevity Corp (NGVT)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,402,200 | 1,595,100 | 1,604,200 | 1,337,300 | 1,174,800 |
| Total assets | US$ in thousands | 2,022,600 | 2,623,300 | 2,736,500 | 2,469,000 | 2,334,500 |
| Total asset turnover | 0.69 | 0.61 | 0.59 | 0.54 | 0.50 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,402,200K ÷ $2,022,600K
= 0.69
The total asset turnover ratio measures the efficiency with which a company generates sales revenue from its total assets. A higher total asset turnover indicates that the company is utilizing its assets more effectively to generate sales.
Ingevity Corp's total asset turnover has been gradually improving over the years, increasing from 0.50 in December 31, 2020, to 0.69 by December 31, 2024. This upward trend suggests that the company has been able to generate more sales revenue relative to its total assets.
The year-over-year increase in total asset turnover reflects improved asset management and operational efficiency within the company. It indicates that Ingevity Corp is becoming more adept at utilizing its assets to drive sales growth and generate value for its shareholders.
Overall, the increasing trend in Ingevity Corp's total asset turnover ratio is a positive indicator of the company's improving operational performance and efficiency in generating sales revenue from its assets.
Peer comparison
Dec 31, 2024