Ingevity Corp (NGVT)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.15 | 3.92 | 3.66 | 3.64 | 4.03 |
Ingevity Corp's solvency ratios indicate its ability to meet its financial obligations and manage debt effectively over the years. The debt-to-assets ratio has shown a slight increase from 0.51 in 2021 to 0.56 in 2023, suggesting that a higher proportion of the company's assets are being financed through debt.
Similarly, the debt-to-capital ratio and the debt-to-equity ratio have also trended upwards from 2020 to 2023, indicating a greater reliance on debt to fund the company's operations and investments. Specifically, the debt-to-equity ratio rose from 1.88 in 2021 to 2.32 in 2023, reflecting a higher level of leverage compared to equity in the company's capital structure.
Additionally, the financial leverage ratio, which measures the company's total assets relative to shareholders' equity, has also increased over the years. This suggests that the company is financing a larger portion of its assets through debt rather than equity.
Overall, the upward trend in these solvency ratios indicates that Ingevity Corp's financial risk may be increasing as it relies more heavily on debt to support its operations and growth. It would be important for the company to monitor and manage its debt levels effectively to maintain a healthy balance sheet and financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 0.89 | 5.36 | 4.15 | 5.99 | 5.17 |
The interest coverage ratio indicates Ingevity Corp's ability to meet its interest payments on outstanding debt with its operating income. A higher ratio suggests better capability to cover interest expenses.
Ingevity Corp's interest coverage has exhibited fluctuating trends over the past five years. In 2023, the interest coverage ratio decreased to 2.95 from 6.28 in 2022, indicating a notable decline in the company's ability to cover interest payments with its operating income.
Comparing 2023 to prior years, the interest coverage ratio is lower than the three-year average from 2021 to 2019 (average of 6.61). This suggests that in 2023, Ingevity Corp may be experiencing challenges in meeting its interest obligations compared to the previous three years.
Further analysis and monitoring of the company's financial performance and interest coverage ratio would be advisable to assess the sustainability of its debt obligations and overall financial health.