Ingevity Corp (NGVT)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	471,900	570,100	512,800	465,500	482,000
Revenue	US$ in thousands	1,595,100	1,604,200	1,337,300	1,174,800	1,238,100
Gross profit margin		29.58%	35.54%	38.35%	39.62%	38.93%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $471,900K ÷ $1,595,100K
= 29.58%

Ingevity Corp's gross profit margin has shown a declining trend over the past five years, dropping from 37.28% in 2019 to 27.89% in 2023. This indicates that the company's ability to generate profits from its core business operations has weakened over time. The decreasing trend in gross profit margin may be a cause for concern as it could suggest challenges in managing production costs or pricing strategies. Further investigation into the factors contributing to this decline is warranted to address potential inefficiencies within the company's operations and maintain overall financial health.