Ingevity Corp (NGVT)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 32.43% | 29.58% | 35.54% | 38.35% | 39.62% |
| Operating profit margin | 26.32% | 24.88% | 28.21% | 31.57% | 33.87% |
| Pretax margin | -38.20% | -0.63% | 16.81% | 12.17% | 20.01% |
| Net profit margin | -30.69% | -0.34% | 13.19% | 8.83% | 15.44% |
Ingevity Corp's profitability ratios have shown some fluctuations over the years.
1. Gross Profit Margin: The gross profit margin, a measure of a company's profitability after accounting for the cost of goods sold, has decreased from 39.62% in 2020 to 32.43% in 2024. This indicates a decline in the efficiency of production and distribution processes.
2. Operating Profit Margin: The operating profit margin, which reveals the percentage of profit generated from core operations, has also experienced a decrease from 33.87% in 2020 to 26.32% in 2024. This suggests a potential increase in operating expenses or a decrease in revenue.
3. Pretax Margin: The pretax margin, demonstrating the proportion of income before taxes, has fluctuated significantly over the years. It decreased from 20.01% in 2020 to -38.20% in 2024, reflecting challenges in generating profits before accounting for taxes.
4. Net Profit Margin: The net profit margin, a key indicator of overall profitability, has shown a downward trend from 15.44% in 2020 to -30.69% in 2024. This highlights a decline in the company's ability to generate profits after accounting for all expenses.
Overall, the trend in profitability ratios for Ingevity Corp raises concerns about its operational efficiency, cost management, and revenue generation. Further analysis of the underlying factors driving these trends would be essential for better understanding the company's financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.24% | 15.13% | 16.54% | 17.10% | 17.04% |
| Return on assets (ROA) | -21.27% | -0.21% | 7.73% | 4.78% | 7.77% |
| Return on total capital | -224.28% | 13.18% | 47.46% | 31.83% | 43.95% |
| Return on equity (ROE) | -220.44% | -0.86% | 30.30% | 17.53% | 28.25% |
Ingevity Corp's profitability ratios show varying trends over the years.
Operating Return on Assets (Operating ROA):
- The Operating Return on Assets has been relatively stable, ranging from 15.13% to 18.24% over the years, indicating that the company is efficient in generating operating profits from its assets.
Return on Assets (ROA):
- The Return on Assets shows more volatility, with a decrease from 7.77% in 2020 to -21.27% in 2024. A negative ROA in the later years suggests that the company's net income is not sufficient to cover its total assets.
Return on Total Capital:
- The Return on Total Capital has also fluctuated significantly, ranging from 13.18% to -224.28%. The negative values in 2024 indicate that the company's total capital is generating losses rather than returns.
Return on Equity (ROE):
- The Return on Equity experienced a similar trend as the Return on Total Capital, declining from 28.25% in 2020 to -220.44% in 2024. A negative ROE implies that the company's shareholders are facing a loss on their investment.
Overall, Ingevity Corp's profitability ratios reflect mixed performance, with the Operating ROA showing stability while the ROA, Return on Total Capital, and ROE exhibiting significant fluctuations and deteriorating trends in recent years. Further analysis of the company's financial and operational strategies may be needed to understand the drivers behind these changes and to identify areas for improvement.