Ingevity Corp (NGVT)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.15 | 3.85 | 3.96 | 3.82 | 3.92 | 3.68 | 3.62 | 3.58 | 3.66 | 3.76 | 3.47 | 3.54 | 3.64 | 3.66 | 4.20 | 4.69 | 4.03 | 4.78 | 5.31 | 5.87 |
Ingevity Corp's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and the proportion of debt in its capital structure.
The Debt-to-assets ratio ranged from 0.53 to 0.56 over the recent quarters, indicating that around 53% to 56% of the company's total assets were financed by debt. This suggests a moderate level of financial leverage.
The Debt-to-capital ratio, ranging from 0.67 to 0.70, shows that approximately 67% to 70% of Ingevity Corp's capital structure is comprised of debt. This indicates a relatively high reliance on debt financing.
The Debt-to-equity ratio varied from 2.05 to 2.32, revealing that the company's debt levels were around 2 to 2.32 times its equity. This signifies a significant presence of debt in the company's capital structure compared to equity.
The Financial leverage ratio ranged from 3.58 to 4.15, indicating that the company's assets were leveraged through debt between approximately 3.58 to 4.15 times. This suggests that Ingevity Corp's financial risk may be relatively high due to the substantial reliance on debt to finance its operations and investments.
Overall, the solvency ratios of Ingevity Corp reflect a consistent reliance on debt financing to support its operations and investments, which may pose risks related to the company's ability to meet debt obligations, particularly in times of economic uncertainty or financial distress.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.56 | 5.03 | 6.27 | 6.92 | 8.01 | 8.98 | 8.43 | 8.86 | 8.67 | 9.14 | 9.88 | 9.00 | 9.00 | 4.62 | 4.95 | 6.34 | 7.27 | 30.09 | 18.73 | 13.37 |
The interest coverage ratio for Ingevity Corp has been trending downwards over the past few quarters, indicating a declining ability to cover interest expenses with operating income. In Q4 2023, the interest coverage ratio stood at 2.95, which was lower compared to the previous quarters. This suggests that the company's ability to meet its interest obligations from its operating profits has weakened. The ratio has shown a consistent decrease since Q1 2022, where it was the highest at 6.92.
A declining interest coverage ratio raises concerns about the company's financial health and its ability to manage debt obligations. Investors and creditors may view a decreasing interest coverage ratio as a sign of increased financial risk. Ingevity Corp should closely monitor its interest coverage ratio and take necessary steps to improve it, such as increasing profitability or reducing debt levels, to ensure financial stability and viability in the long term.