Ingevity Corp (NGVT)
Working capital 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 current assets | US$ in thousands | 658,600 | 683,300 | 724,900 | 628,700 | 463,200 |
| Total current liabilities | US$ in thousands | 362,900 | 303,500 | 268,900 | 223,400 | 215,500 |
| Working capital turnover | 5.39 | 4.22 | 2.93 | 2.90 | 5.00 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,595,100K ÷ ($658,600K – $362,900K)
= 5.39
The working capital turnover ratio for Ingevity Corp has shown fluctuations over the past five years. In 2023, the ratio stood at 5.72, marking a significant increase compared to the previous year where it was 4.44. This indicates a more efficient utilization of working capital to generate sales revenue.
In 2021 and 2020, the working capital turnover ratios were 3.05 and 3.00 respectively, suggesting a lower efficiency in converting working capital into sales during those years.
The highest working capital turnover ratio was observed in 2019 at 5.22, indicating a very efficient use of working capital to generate sales revenue.
Overall, the trend in the working capital turnover ratio indicates that Ingevity Corp has been able to improve its efficiency in managing working capital to support its sales growth over the years, with a peak in 2023.
Peer comparison
Dec 31, 2023