Ingevity Corp (NGVT)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,402,200 | 1,382,300 | 1,451,400 | 1,542,600 | 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 |
| Total current assets | US$ in thousands | 493,200 | 636,800 | 685,800 | 669,200 | 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 |
| Total current liabilities | US$ in thousands | 264,100 | 360,800 | 357,800 | 351,700 | 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 |
| Working capital turnover | 6.12 | 5.01 | 4.42 | 4.86 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,402,200K ÷ ($493,200K – $264,100K)
= 6.12
The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio is generally favorable as it reflects that the company is effectively managing its working capital.
Analyzing the working capital turnover of Ingevity Corp over the specified quarters, we observe the following trends:
1. The working capital turnover ratio fluctuated within a range, showing variability in the company's efficiency in utilizing its working capital to support its sales operations.
2. The ratio was relatively stable in the range of 2.5 to 3.2 from March 2020 to June 2022, indicating consistent performance in terms of working capital efficiency.
3. There was a significant increase in the ratio in March 2022 to 7.73, suggesting a substantial improvement in the company's working capital management efficiency at that time.
4. However, the ratio decreased in the following quarters but remained relatively higher compared to the initial period, indicating ongoing efforts to maintain efficient working capital turnover.
5. From December 2023 to December 2024, the working capital turnover ratio increased consistently, reaching its peak at 6.12, which could signify improved working capital utilization efficiency during that period.
Overall, the analysis of Ingevity Corp's working capital turnover indicates fluctuations in the company's efficiency in managing its working capital to support its sales activities. The significant increase in the ratio in March 2022 and the subsequent consistently higher ratios from December 2023 to December 2024 suggest improvements in working capital management, which could positively impact the company's financial performance.
Peer comparison
Dec 31, 2024