Ingevity Corp (NGVT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,022,600 | 2,623,300 | 2,736,500 | 2,469,000 | 2,334,500 |
| Total stockholders’ equity | US$ in thousands | 195,200 | 631,400 | 698,300 | 673,800 | 642,100 |
| Financial leverage ratio | 10.36 | 4.15 | 3.92 | 3.66 | 3.64 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,022,600K ÷ $195,200K
= 10.36
The financial leverage ratio of Ingevity Corp has shown an increasing trend over the years, rising from 3.64 as of December 31, 2020, to 10.36 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations and growth has significantly increased over this period.
A financial leverage ratio above 5 is typically considered high, suggesting that Ingevity Corp may have a relatively high level of financial risk due to its increasing debt burden. It is important for investors and stakeholders to closely monitor the company's ability to meet its debt obligations and manage its leverage effectively to avoid potential financial distress in the future.
Peer comparison
Dec 31, 2024