Ingevity Corp (NGVT)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands -535,600 -698,400 -528,400 -146,100 -10,100 163,600 227,300 256,100 269,600 286,200 181,400 178,600 162,800 192,900 290,000 241,700 235,100 223,800 213,100 260,400
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
Pretax margin -38.20% -50.52% -36.41% -9.47% -0.63% 9.98% 13.56% 15.87% 16.81% 18.27% 12.41% 12.76% 12.17% 13.97% 21.71% 19.36% 19.34% 18.75% 17.46% 20.02%

December 31, 2024 calculation

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

Ingevity Corp's pretax margin, which measures the company's profitability before accounting for taxes, has shown fluctuations over the last few years. From March 31, 2020, to September 30, 2021, the pretax margin remained relatively stable, ranging from 13.97% to 21.71%. However, starting from the end of September 2021, there was a significant decline in the pretax margin, dropping to as low as -50.52% by September 30, 2024. This drastic decrease indicates a substantial decrease in profitability or even losses before taxes during this period.

The downward trend in the pretax margin from the end of September 2021 to December 31, 2024, suggests that Ingevity Corp faced challenges that negatively impacted its overall profitability. It is important for stakeholders to closely monitor the company's financial performance and assess the reasons behind the declining pretax margin to understand the underlying issues affecting the company's profitability.