Ingevity Corp (NGVT)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands -535,600 -10,100 269,600 162,800 235,100
Revenue US$ in thousands 1,402,200 1,595,100 1,604,200 1,337,300 1,174,800
Pretax margin -38.20% -0.63% 16.81% 12.17% 20.01%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-535,600K ÷ $1,402,200K
= -38.20%

Ingevity Corp's pretax margin has experienced fluctuations over the past five years, as indicated by the data provided. The pretax margin, which measures the company's profitability before taxes relative to its total revenue, was at a healthy level of 20.01% as of December 31, 2020. However, there was a significant decrease to 12.17% by December 31, 2021.

Subsequently, the pretax margin showed improvement, reaching 16.81% by December 31, 2022. However, the trend reversed dramatically in the following years. The margin turned negative, dropping to -0.63% by December 31, 2023, and further deteriorated to -38.20% by December 31, 2024.

The declining pretax margin trend in recent years may indicate challenges in cost management, pricing strategies, or other operational inefficiencies within Ingevity Corp. Further analysis of the company's financial performance and operations is recommended to understand the underlying reasons for these fluctuations and to identify potential areas for improvement.