Ingevity Corp (NGVT)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	369,000	350,200	350,400	369,800	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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		189.04%	163.26%	123.03%	65.08%	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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $369,000K ÷ ($—K + $195,200K)
= 189.04%

Ingevity Corp's return on total capital has shown a fluctuating trend over the analyzed period. The ratio was at a high of 80.78% as of March 31, 2020, indicating a strong return generated from the capital employed. Subsequently, there was a downward trend in the ratio, declining to 61.28% by September 30, 2020. However, a slight recovery was observed by the end of December 2020, with a ratio of 61.97%.

From March 31, 2021, there was a gradual increase in the return on total capital, reaching a peak of 189.04% by December 31, 2024. This substantial increase may suggest improved efficiency in utilizing the company's total capital to generate profits.

Overall, the return on total capital for Ingevity Corp has displayed significant variability but ended on a strong note by the end of the period analyzed. The company appears to have made successful efforts to enhance its profitability concerning the capital invested. Investors and stakeholders may view this upward trend positively as it indicates effective capital utilization and potential financial health.