Ingevity Corp (NGVT)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $631,400K
= 0.00
Ingevity Corp's debt-to-equity ratio has shown some fluctuations over the past five years, ranging from 1.88 in 2021 to 2.36 in 2019. The ratio increased to 2.32 in 2023 from the prior year's 2.11. This indicates that for every dollar of equity, Ingevity Corp had $2.32 of debt at the end of 2023.
A higher debt-to-equity ratio suggests that the company has been relying more on debt financing compared to equity financing, which can indicate higher financial risk due to potentially higher interest obligations. Conversely, a lower ratio would indicate a company relying more on equity financing, which is generally seen as less risky.
It is important to consider the trend over multiple periods when analyzing the debt-to-equity ratio, as a consistent increase or decrease could reflect a deliberate financial strategy or changing financial health. Ingevity Corp's fluctuating ratio should be further investigated alongside other financial metrics to understand the company's overall financial position and leverage levels.
Peer comparison
Dec 31, 2023