Ingevity Corp (NGVT)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	396,800	409,300	437,100	437,500	452,600	457,900	439,200	435,800	422,200	453,500	461,600	411,100	397,900	378,100	364,500	405,600	396,900	379,100	355,800	336,900
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		62.84%	56.95%	61.21%	60.29%	64.81%	72.24%	67.13%	63.52%	62.66%	70.36%	67.04%	62.18%	61.97%	61.28%	69.71%	80.78%	74.77%	85.52%	88.79%	93.92%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $396,800K ÷ ($—K + $631,400K)
= 62.84%

Ingevity Corp's return on total capital has gradually decreased over the past eight quarters, starting at 19.49% in Q3 2022 and reaching 12.22% in Q4 2023. This downward trend indicates a potential deterioration in the company's ability to generate profits relative to the total capital employed. However, it is important to note that the return on total capital has fluctuated within this period, with some quarters showing slight improvements, such as in Q3 2023 and Q1 2023. Further analysis is necessary to understand the factors driving these fluctuations and to assess the overall efficiency and effectiveness of Ingevity Corp's capital utilization.