Ingevity Corp (NGVT)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 454,700 | 471,900 | 570,100 | 512,800 | 465,500 |
| Revenue | US$ in thousands | 1,402,200 | 1,595,100 | 1,604,200 | 1,337,300 | 1,174,800 |
| Gross profit margin | 32.43% | 29.58% | 35.54% | 38.35% | 39.62% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $454,700K ÷ $1,402,200K
= 32.43%
The gross profit margin of Ingevity Corp has displayed a declining trend over the past five years. Starting at 39.62% as of December 31, 2020, the margin decreased to 38.35% by December 31, 2021, further dropping to 35.54% by December 31, 2022. The trend continued with a significant decline to 29.58% by December 31, 2023, before rebounding slightly to 32.43% as of December 31, 2024.
This downward trajectory in the gross profit margin indicates a potential erosion of profitability in Ingevity Corp's core operations. The decrease in the margin could be attributed to various factors such as changes in input costs, pricing pressures, or inefficiencies in production processes. This trend warrants further investigation and strategic management actions to address and potentially reverse the declining profitability levels observed in the past few years.
Peer comparison
Dec 31, 2024