Ingevity Corp (NGVT)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 10.36 | 10.31 | 7.99 | 4.52 | 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 |
Ingevity Corp's solvency ratios indicate a strong financial position with consistently low debt-related ratios over the years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all remained at 0.00 from March 2020 to December 2024, indicating that the company has minimal debt in relation to its assets, capital, and equity.
The financial leverage ratio, which measures the proportion of the company's total assets financed by debt, decreased from 4.69 in March 2020 to 3.66 in December 2021, suggesting a decreasing reliance on debt in the company's capital structure. However, there was a significant increase in the financial leverage ratio in the latter half of 2024, reaching 10.36 by December 31, 2024. This spike may indicate a recent higher level of debt relative to the company's assets, potentially impacting its financial risk profile.
Overall, while Ingevity Corp has maintained a strong solvency position with minimal debt levels in the past, the sudden increase in the financial leverage ratio towards the end of 2024 warrants further investigation to assess the potential impact on the company's long-term financial stability.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.79 | 3.70 | 3.76 | 4.08 | 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 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
For Ingevity Corp, the interest coverage ratio has shown some fluctuations over the observed period. Starting from March 31, 2020, with a ratio of 6.34, it decreased to a low of 3.70 by September 30, 2024. The ratio peaked at 9.88 on June 30, 2021.
Overall, Ingevity Corp's interest coverage ratio appears to have remained relatively healthy, staying above 1 (indicating that the company is generating sufficient earnings to cover its interest expenses) throughout the period. However, there was a decreasing trend from the peak in mid-2021 to the end of 2024, which may warrant further investigation into the company's financial stability and ability to service its debt obligations in the long run.