Ingevity Corp (NGVT)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 2,623,300 | 2,736,500 | 2,469,000 | 2,334,500 | 2,141,700 |
| Operating ROA | 15.13% | 16.54% | 17.10% | 17.04% | 18.53% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $396,800K ÷ $2,623,300K
= 15.13%
The operating return on assets (operating ROA) for Ingevity Corp has exhibited a declining trend over the past five years. From 2019 to 2023, the operating ROA decreased from 13.97% to 9.77%, indicating a reduction in the company's ability to generate operating income from its asset base. This decline may suggest challenges in efficiently utilizing assets to generate profits or potential issues affecting the company's operating performance. Further analysis of the company's asset management and operational efficiency may be warranted to identify the underlying causes of this trend and assess potential strategies for improvement.
Peer comparison
Dec 31, 2023