Ingevity Corp (NGVT)

Net profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	-430,300	-563,700	-431,300	-112,100	-5,400	127,000	177,200	201,500	211,600	225,300	145,700	130,200	118,100	134,800	208,900	184,800	181,400	179,700	169,700	206,300
Revenue (ttm)	US$ in thousands	1,402,200	1,382,300	1,451,400	1,542,600	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
Net profit margin		-30.69%	-40.78%	-29.72%	-7.27%	-0.34%	7.74%	10.57%	12.48%	13.19%	14.38%	9.97%	9.30%	8.83%	9.76%	15.64%	14.81%	14.92%	15.06%	13.91%	15.86%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $-430,300K ÷ $1,402,200K
= -30.69%

The net profit margin of Ingevity Corp has shown some fluctuations over the periods under review. Starting from March 31, 2020, where it was at a healthy 15.86%, the margin remained above 10% until June 30, 2021, reflecting a consistent profitability level. However, from September 30, 2021, there was a noticeable decline in the net profit margin, which fell to as low as 7.74% on September 30, 2023, and even turned negative on December 31, 2023, and subsequent quarters.

The negative net profit margins recorded in the latter part of the period may indicate that Ingevity Corp was experiencing challenges in generating profits relative to its revenue during those periods. This could be due to various factors such as rising costs, declining sales, or other operational inefficiencies.

Overall, analyzing the net profit margin trend reveals a decline in profitability for Ingevity Corp in the latter part of the period, which may raise concerns for investors and stakeholders about the company's financial performance and operational efficiency during those quarters. It would be important for the company to address the factors contributing to this decline and implement strategies to improve its profitability in the future.