Ingevity Corp (NGVT)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,595,100 | 1,639,900 | 1,675,900 | 1,614,000 | 1,604,200 | 1,566,500 | 1,461,300 | 1,399,800 | 1,337,300 | 1,381,100 | 1,336,000 | 1,248,200 | 1,215,700 | 1,193,500 | 1,220,200 | 1,300,800 | 1,289,800 | 1,265,000 | 1,217,800 | 1,483,800 |
| Total current assets | US$ in thousands | 658,600 | 734,500 | 764,400 | 716,300 | 683,300 | 645,100 | 677,700 | 732,800 | 724,900 | 720,300 | 669,600 | 642,400 | 628,700 | 601,000 | 579,700 | 724,500 | 463,200 | 499,000 | 491,600 | 455,000 |
| Total current liabilities | US$ in thousands | 362,900 | 305,100 | 311,100 | 278,800 | 303,500 | 290,300 | 267,200 | 551,700 | 268,900 | 247,600 | 232,800 | 224,500 | 223,400 | 178,900 | 187,900 | 207,700 | 215,500 | 208,800 | 216,000 | 198,300 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,595,100K ÷ ($658,600K – $362,900K)
= 5.39
Ingevity Corp's working capital turnover has shown fluctuations over the past eight quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates that the company is effectively managing its working capital.
In Q4 2023, the working capital turnover ratio was 5.72, which was higher compared to the previous quarter at 3.97. This indicates that the company was able to generate more revenue relative to its working capital in Q4 2023. However, in the two quarters prior to Q4 2023, the ratio remained relatively stable at around 3.84.
In Q1 2022, Ingevity Corp had a notably high working capital turnover ratio of 8.03, suggesting very efficient management of working capital to generate revenue. This was followed by fluctuations in the subsequent quarters.
Overall, the trend in the working capital turnover ratio for Ingevity Corp has been somewhat volatile, with occasional spikes and drops. Further analysis and comparison with industry benchmarks could provide more insights into the company's working capital management efficiency.
Peer comparison
Dec 31, 2023