Ingevity Corp (NGVT)

Return on assets (ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income US$ in thousands -430,300 -5,400 211,600 118,100 181,400
Total assets US$ in thousands 2,022,600 2,623,300 2,736,500 2,469,000 2,334,500
ROA -21.27% -0.21% 7.73% 4.78% 7.77%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-430,300K ÷ $2,022,600K
= -21.27%

Based on the provided data, Ingevity Corp's return on assets (ROA) has shown fluctuations over the years.

1. In December 31, 2020, the ROA was 7.77%, indicating that for every dollar of assets the company had, it generated a return of 7.77%.

2. By December 31, 2021, the ROA decreased to 4.78%, suggesting a decline in the company's ability to generate profits from its assets.

3. However, in December 31, 2022, the ROA improved to 7.73%, showing a rebound in the company's asset utilization and profitability.

4. The trend took a negative turn by December 31, 2023, with a negative ROA of -0.21%, indicating that the company's assets were not generating returns and potentially raising concerns about inefficiencies in asset management or profitability.

5. The situation worsened significantly by December 31, 2024, where the ROA plummeted to -21.27%, signifying a substantial decrease in asset productivity and profitability, which could raise red flags for investors and stakeholders.

In conclusion, Ingevity Corp's ROA has been volatile, with fluctuations indicating varying levels of efficiency in utilizing its assets to generate profits over the years. Further analysis is recommended to understand the underlying reasons behind these fluctuations and to assess the company's long-term sustainability.