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Ingevity (Ingevity) Gross Margin % : 16.01% (As of Dec. 2023)


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What is Ingevity Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Ingevity's Gross Profit for the three months ended in Dec. 2023 was $60 Mil. Ingevity's Revenue for the three months ended in Dec. 2023 was $372 Mil. Therefore, Ingevity's Gross Margin % for the quarter that ended in Dec. 2023 was 16.01%.

Warning Sign:

Ingevity Corp gross margin has been in long-term decline. The average rate of decline per year is -4.7%.


The historical rank and industry rank for Ingevity's Gross Margin % or its related term are showing as below:

NGVT' s Gross Margin % Range Over the Past 10 Years
Min: 27.89   Med: 34   Max: 38.28
Current: 27.89


During the past 12 years, the highest Gross Margin % of Ingevity was 38.28%. The lowest was 27.89%. And the median was 34.00%.

NGVT's Gross Margin % is ranked better than
63.58% of 1510 companies
in the Chemicals industry
Industry Median: 22.315 vs NGVT: 27.89

Ingevity had a gross margin of 16.01% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ingevity was -4.70% per year.


Ingevity Gross Margin % Historical Data

The historical data trend for Ingevity's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ingevity Gross Margin % Chart

Ingevity Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.28 38.28 36.85 34.17 27.89

Ingevity Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.48 33.21 31.76 28.92 16.01

Competitive Comparison of Ingevity's Gross Margin %

For the Specialty Chemicals subindustry, Ingevity's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ingevity's Gross Margin % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ingevity's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ingevity's Gross Margin % falls into.



Ingevity Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Ingevity's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=471.9 / 1692.1
=(Revenue - Cost of Goods Sold) / Revenue
=(1692.1 - 1220.2) / 1692.1
=27.89 %

Ingevity's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=59.5 / 371.7
=(Revenue - Cost of Goods Sold) / Revenue
=(371.7 - 312.2) / 371.7
=16.01 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Ingevity  (NYSE:NGVT) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Ingevity had a gross margin of 16.01% for the quarter that ended in Dec. 2023 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Ingevity Gross Margin % Related Terms

Thank you for viewing the detailed overview of Ingevity's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ingevity (Ingevity) Business Description

Traded in Other Exchanges
Address
4920 O'Hear Avenue, Suite 400, North Charleston, SC, USA, 29405
Ingevity Corp is a chemical manufacturer based in the United States. It conducts its operations through two segments, namely Performance Chemicals and Performance Materials. The bulk of its revenue is generated by the Performance Chemicals segment which deals with the manufacture and sale of specialty chemicals which find their use in a range of processes such as asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, and publication inks. The Performance Materials segment, on the other hand, focusses on automotive carbon products used in automobiles. The Company sells its products worldwide, with special emphasis on North America.
Executives
Christine Stunyo officer: SVP, Chief HR Officer 4920 O'HEAR AVENUE, SUITE 400, NORTH CHARLESTON SC 29405
White Richard Allen Jr officer: SVP, Perf Chem and Pres, ISPT 4920 O'HEAR AVE, SUITE 400, NORTH CHARLESTON SC 29405
Phillip John Platt officer: VP, CAO & Corporate Controller 5255 VIRGINIA AVE, NORTH CHARLESTON SC 29406
Woodcock Stuart Edward Jr. officer: EVP, President Perf Materials 5255 VIRGINIA AVE, NORTH CHARLESTON SC 29406
Bruce D. Hoechner director 2225 W CHANDLER BLVD, CHANDLER AZ 85224
Erik Spencer Ripple officer: Chief Growth & Innov Officer 4920 O'HEAR AVENUE, SUITE 400, NORTH CHARLESTON SC 29405
Benjamin G. Wright director 4920 O'HEAR AVENUE, SUITE 400, NORTH CHARLESTON SC 29405
William J Slocum director C/O INCLUSIVE CAPITAL PARTNERS, L.P., 1170 GORGAS AVENUE, SAN FRANCISCO CA 94129
J Michael Fitzpatrick director C/O CARPENTER TECHNOLOGY CORP, PO BOX 14662, READING PA 19612-4662
Diane H. Gulyas director C/O EXPEDITORS, 1015 THIRD AVENUE, SEATTLE WA 98104
Jean S Blackwell director
Frederick J Lynch director C/O MASONITE INTERNATIONAL CORPORATION, 201 NORTH FRANKLIN ST., SUITE 300, TAMPA FL 33602
Luis M Fernandez-moreno director ASHLAND INC., 8145 BLAZER DRIVE, WILMINGTON DE 19808
Karen G Narwold director ALBEMARLE CORPORATION, 4250 CONGRESS ST, SUITE 900, CHARLOTTE NC 28209
Steven Paul Hulme officer: SVP, Perf Chem and Pres, EP 4920 O'HEAR AVE, SUITE 400, NORTH CHARLESTON SC 29405

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