Ingevity Corp (NGVT)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	396,800	452,600	422,200	397,900	396,900
Revenue	US$ in thousands	1,595,100	1,604,200	1,337,300	1,174,800	1,238,100
Operating profit margin		24.88%	28.21%	31.57%	33.87%	32.06%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $396,800K ÷ $1,595,100K
= 24.88%

The operating profit margin of Ingevity Corp has exhibited a declining trend over the past five years. Specifically, the margin decreased from 23.14% in 2019 to 15.15% in 2023. This suggests a decrease in the company's ability to generate profit from its core operations relative to its revenue. The declining trend in operating profit margin could be indicative of factors such as increasing operating costs, pricing pressures, or inefficiencies in the company's operations. It is important for stakeholders to further investigate the reasons behind this trend and assess the company's operational efficiency and profitability prospects.