Ingevity Corp (NGVT)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	83,200	331,400	214,500	282,200	282,500
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	631,400	698,300	673,800	642,100	530,800
Return on total capital		13.18%	47.46%	31.83%	43.95%	53.22%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $83,200K ÷ ($—K + $631,400K)
= 13.18%

Ingevity Corp's return on total capital has shown a declining trend over the past five years, decreasing from 16.90% in 2019 to 12.22% in 2023. This indicates that the company's ability to generate profits from its total capital employed has weakened over time. It is important for the company to closely monitor and evaluate the factors contributing to this decline to identify areas for improvement and potential operational efficiencies. Additionally, comparing the company's return on total capital with industry benchmarks and competitors can provide further insights into its performance and competitiveness in the market.