Ingevity Corp (NGVT)
Return on equity (ROE)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -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 | 183,700 | 181,500 | 171,100 | 161,000 |
| Total stockholders’ equity | US$ in thousands | 631,400 | 718,700 | 714,100 | 725,700 | 698,300 | 633,900 | 654,300 | 686,100 | 673,800 | 644,500 | 688,500 | 661,100 | 642,100 | 617,000 | 522,900 | 502,100 | 530,800 | 443,300 | 400,700 | 358,700 |
| ROE | -0.86% | 17.67% | 24.81% | 27.77% | 30.30% | 35.54% | 22.27% | 18.98% | 17.53% | 20.92% | 30.34% | 27.95% | 28.25% | 29.12% | 32.45% | 41.09% | 34.61% | 40.94% | 42.70% | 44.88% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-5,400K ÷ $631,400K
= -0.86%
Ingevity Corp's return on equity (ROE) has shown fluctuations over the past eight quarters, ranging from -0.86% to 35.54%.
In Q1 2022, the ROE was at a relatively high level of 18.98%. The ratio increased further in the following quarters, reaching the peak of 35.54% in Q3 2022. This indicates that the company was generating substantial profits relative to shareholders' equity during that period.
However, the ROE started declining from Q4 2022 and continued to decrease through the first three quarters of 2023. Most notably, the ROE turned negative in Q4 2023 at -0.86%, signifying that the company's net income was insufficient to cover shareholders' equity.
The declining trend in ROE could suggest potential issues with the company's profitability and efficiency in generating returns for shareholders. Investors and analysts may want to further investigate the reasons behind the decreasing ROE and evaluate the company's strategies for improving profitability in the future.
Peer comparison
Dec 31, 2023