Ingevity Corp (NGVT)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	369,000	396,800	452,600	422,200	397,900
Revenue	US$ in thousands	1,402,200	1,595,100	1,604,200	1,337,300	1,174,800
Operating profit margin		26.32%	24.88%	28.21%	31.57%	33.87%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $369,000K ÷ $1,402,200K
= 26.32%

Ingevity Corp's operating profit margin has experienced a declining trend over the past five years. The margin decreased from 33.87% in December 2020 to 31.57% in December 2021, indicating a slight decrease in profitability. This was followed by a more significant decline to 28.21% in December 2022, and a further drop to 24.88% in December 2023, reflecting a notable decrease in operating efficiency.

However, there was a slight improvement in operating profit margin in December 2024, rising to 26.32%. Despite this improvement, the margin remains lower than the levels seen in the earlier years. Overall, the decreasing trend in the operating profit margin suggests that Ingevity Corp may be facing challenges in managing its operating expenses effectively or generating sufficient revenues to maintain profitability. Further analysis of the company's cost structure and revenue streams may be necessary to identify opportunities for improvement.