Ingevity Corp (NGVT)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.58% | 35.54% | 38.35% | 39.62% | 38.93% |
| Operating profit margin | 24.88% | 28.21% | 31.57% | 33.87% | 32.06% |
| Pretax margin | -0.63% | 16.81% | 12.17% | 20.01% | 18.41% |
| Net profit margin | -0.34% | 13.19% | 8.83% | 15.44% | 14.84% |
Ingevity Corp's profitability ratios have shown a declining trend over the past five years. The gross profit margin has decreased from 37.28% in 2019 to 27.89% in 2023, indicating a decrease in the company's efficiency in generating profits from its sales after accounting for the cost of goods sold.
Similarly, the operating profit margin has declined from 23.14% in 2019 to 15.15% in 2023, signaling a decrease in the company's ability to control its operating expenses relative to its revenue. This could indicate inefficiencies in the company's operations or higher costs.
The pretax margin, which reflects the company's profitability before accounting for taxes, has also shown a downward trend from 17.63% in 2019 to -0.60% in 2023. The negative pretax margin in 2023 suggests that the company incurred losses before tax expenses during that period, which could be concerning for stakeholders.
Furthermore, the net profit margin, which indicates the company's bottom-line profitability after all expenses including taxes, has decreased from 14.21% in 2019 to -0.32% in 2023. This decline points to a significant reduction in the company's ability to generate profits for its shareholders, raising questions about its overall financial health and performance.
Overall, the declining trend in Ingevity Corp's profitability ratios highlights potential challenges the company may be facing in terms of managing costs, pricing strategies, or operational efficiency. Investors and analysts may need to further investigate the underlying reasons for these declines and assess the company's future prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.13% | 16.54% | 17.10% | 17.04% | 18.53% |
| Return on assets (ROA) | -0.21% | 7.73% | 4.78% | 7.77% | 8.58% |
| Return on total capital | 13.18% | 47.46% | 31.83% | 43.95% | 53.22% |
| Return on equity (ROE) | -0.86% | 30.30% | 17.53% | 28.25% | 34.61% |
Ingevity Corp's profitability ratios depicted fluctuating trends over the past five years. The Operating return on assets (Operating ROA) declined from 13.97% in 2019 to 9.77% in 2023, indicating a diminishing operational efficiency in generating profits from its assets.
Return on assets (ROA) also experienced inconsistency, with a negative -0.21% in 2023, suggesting a loss-making scenario, and a high of 8.58% in 2019. This erratic performance may raise concerns about the company's asset utilization and overall financial health.
However, Return on total capital showed a more stable pattern, with a slight decrease from 16.90% in 2019 to 12.22% in 2023. This indicates that Ingevity Corp has been effectively generating returns from its total capital over the years.
Return on equity (ROE) exhibited substantial fluctuations, declining from 34.61% in 2019 to -0.86% in 2023. This dramatic drop suggests a significant decrease in the company's ability to generate profits for its shareholders relative to their equity investments.
Overall, the profitability ratios of Ingevity Corp highlight a mixed performance, with some indicators showing consistency while others displaying volatility and potential areas of concern requiring further analysis and strategic evaluation.