Ingevity Corp (NGVT)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 195,200 214,500 284,800 568,200 631,400 718,700 714,100 725,700 698,300 633,900 654,300 686,100 673,800 644,500 688,500 661,100 642,100 617,000 522,900 502,100
ROE -220.44% -262.80% -151.44% -19.73% -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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-430,300K ÷ $195,200K
= -220.44%

Ingevity Corp's return on equity (ROE) has exhibited a fluctuating trend over the past few years. Starting at a strong level of 41.09% in March 2020, the ROE declined gradually to 17.53% by December 2021. This decrease in ROE may indicate a reduction in profitability relative to the shareholders' equity during this period.

In the subsequent quarters, the ROE continued to decrease, reaching negative values in March 2024. Negative ROE values, such as -19.73% in March 2024 and -262.80% in September 2024, signify that the company's net income was not sufficient to cover the shareholders' equity, potentially raising concerns about the company's financial health and efficiency in generating returns for shareholders.

It is essential for stakeholders to closely monitor Ingevity Corp's ROE performance, as negative ROE values can indicate underlying issues that may require corrective actions to improve profitability and value creation for the shareholders.