Ingevity Corp (NGVT)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands -430,300 -563,700 -431,300 -112,100 -5,400 127,000 177,200 201,500 211,600 225,300 145,700 130,200 118,100 134,800 208,900 184,800 181,400 179,700 169,700 206,300
Total assets US$ in thousands 2,022,600 2,211,600 2,276,200 2,566,900 2,623,300 2,766,800 2,828,300 2,772,200 2,736,500 2,335,400 2,366,000 2,455,800 2,469,000 2,426,200 2,389,000 2,342,500 2,334,500 2,258,200 2,195,500 2,353,300
ROA -21.27% -25.49% -18.95% -4.37% -0.21% 4.59% 6.27% 7.27% 7.73% 9.65% 6.16% 5.30% 4.78% 5.56% 8.74% 7.89% 7.77% 7.96% 7.73% 8.77%

December 31, 2024 calculation

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

Ingevity Corp's return on assets (ROA) has exhibited fluctuations over the analyzed period. From March 31, 2020, to June 30, 2021, the ROA remained relatively stable, ranging from 7.73% to 8.74%. However, starting from September 30, 2021, there was a noticeable decline in ROA, with figures dropping to as low as 4.59% by September 30, 2023. This downward trend continued, reaching negative values by December 31, 2023, and plunging further into negative territory through June 30, 2024.

The negative ROA indicates that Ingevity Corp's assets are not generating sufficient profits, potentially signaling operational inefficiencies or financial challenges during this period. The negative trend in ROA could also point to declining profitability relative to the assets deployed in the business.

It is essential for Ingevity Corp to address the declining ROA trend to improve operational efficiency, enhance asset utilization, and potentially restore profitability. Understanding the underlying factors driving the negative ROA and implementing strategic measures to optimize asset management and performance will be critical for the company's financial health and sustainable growth.