Ingevity Corp (NGVT)
Working capital 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 current assets | US$ in thousands | 493,200 | 658,600 | 683,300 | 724,900 | 628,700 |
| Total current liabilities | US$ in thousands | 264,100 | 362,900 | 303,500 | 268,900 | 223,400 |
| Working capital turnover | 6.12 | 5.39 | 4.22 | 2.93 | 2.90 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,402,200K ÷ ($493,200K – $264,100K)
= 6.12
The working capital turnover of Ingevity Corp has shown a consistent upward trend over the past five years, increasing from 2.90 in December 31, 2020, to 6.12 in December 31, 2024. This indicates that the company has been able to efficiently utilize its working capital to generate sales.
A working capital turnover ratio of 6.12 in December 31, 2024, means that for every dollar of working capital invested, the company was able to generate $6.12 in sales. This signifies a significant improvement in the company's operational efficiency and its ability to convert its working capital into revenue.
Overall, the increasing trend in the working capital turnover ratio suggests that Ingevity Corp has been managing its working capital effectively and has been successful in leveraging its assets to drive sales growth over the years.
Peer comparison
Dec 31, 2024