Ingevity Corp (NGVT)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -5,400 | 211,600 | 118,100 | 181,400 | 183,700 |
| Total stockholders’ equity | US$ in thousands | 631,400 | 698,300 | 673,800 | 642,100 | 530,800 |
| ROE | -0.86% | 30.30% | 17.53% | 28.25% | 34.61% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-5,400K ÷ $631,400K
= -0.86%
Ingevity Corp's return on equity (ROE) has exhibited significant fluctuations over the past five years. ROE stood at -0.86% in 2023, reflecting a negative return compared to positive returns in the preceding years. The ROE peaked at 34.61% in 2019, indicating strong profitability relative to shareholders' equity. The subsequent years saw a gradual decline in ROE, with values of 28.25% in 2020 and 17.53% in 2021, before the sharp decrease to -0.86% in 2023.
The negative ROE in 2023 is a cause for concern as it indicates that the company's net income was insufficient to cover shareholders' equity, potentially signaling financial distress or operational challenges. Investors and stakeholders may need to investigate the reasons behind this negative return and assess the company's performance and financial health in greater detail.
Peer comparison
Dec 31, 2023