Ingevity Corp (NGVT)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 631,400 | 698,300 | 673,800 | 642,100 | 530,800 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $631,400K)
= 0.00
The debt-to-capital ratio for Ingevity Corp has shown a fluctuating trend over the past five years. In 2023, the ratio increased to 0.70 from 0.68 in the previous year. This suggests that the company's reliance on debt as a source of capital has slightly increased.
Comparing to 2021 and 2020 where the ratio was 0.65 and 0.67 respectively, the current ratio indicates a higher proportion of debt relative to total capital. However, it is noteworthy that the ratio in 2023 is consistent with the ratio reported in 2019, indicating a similar level of debt relative to total capital had already been experienced.
Overall, a debt-to-capital ratio of 0.70 implies that Ingevity Corp finances approximately 70% of its capital structure through debt. This could signify a moderate level of financial leverage, suggesting potential risks associated with higher debt obligations but also potential benefits of tax advantages or the ability to leverage debt for growth opportunities.
Peer comparison
Dec 31, 2023