Ingevity Corp (NGVT)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	471,900	517,800	565,100	562,700	570,100	569,700	535,200	524,400	512,800	535,200	533,000	477,100	465,500	449,100	449,000	499,500	482,000	468,600	447,700	428,800
Revenue (ttm)	US$ in thousands	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	1,289,800	1,265,000	1,217,800	1,483,800
Gross profit margin		29.58%	31.58%	33.72%	34.86%	35.54%	36.37%	36.62%	37.46%	38.35%	38.75%	39.90%	38.22%	38.29%	37.63%	36.80%	38.40%	37.37%	37.04%	36.76%	28.90%

December 31, 2023 calculation

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

Ingevity Corp's gross profit margin has exhibited a declining trend over the past eight quarters, with a decrease from 36.07% in Q1 2022 to 27.89% in Q4 2023. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold. The company experienced its highest gross profit margin in Q2 2022 at 35.32%, followed by a gradual decline in subsequent quarters.

The decreasing trend in the gross profit margin may raise concerns about the efficiency of the company's cost management or pricing strategies. It could suggest challenges in maintaining profitability amid increasing costs or pricing pressures in the industry. Investors and analysts may closely monitor this metric to assess the company's ability to generate profits from its core operations. Further analysis of the factors impacting the gross profit margin, such as changes in input costs or pricing dynamics, would provide valuable insights into Ingevity Corp's financial performance and competitiveness in the market.