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Ingevity (Ingevity) Altman Z-Score : 1.95 (As of Apr. 24, 2024)


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What is Ingevity Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 1.95 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Ingevity has a Altman Z-Score of 1.95, indicating it is in Grey Zones. This implies that Ingevity is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Ingevity's Altman Z-Score or its related term are showing as below:

NGVT' s Altman Z-Score Range Over the Past 10 Years
Min: -79.35   Med: 2.54   Max: 4.95
Current: 1.95

During the past 12 years, Ingevity's highest Altman Z-Score was 4.95. The lowest was -79.35. And the median was 2.54.


Ingevity Altman Z-Score Historical Data

The historical data trend for Ingevity's Altman Z-Score 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 Altman Z-Score Chart

Ingevity Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.87 2.62 2.46 2.46 1.94

Ingevity Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Altman Z-Score 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 2.46 2.49 2.30 2.17 1.94

Competitive Comparison of Ingevity's Altman Z-Score

For the Specialty Chemicals subindustry, Ingevity's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ingevity's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Ingevity's Altman Z-Score falls into.



Ingevity Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Ingevity's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1127+1.4*0.3821+3.3*0.0317+0.6*0.8785+1.0*0.645
=1.95

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Dec. 2023:
Total Assets was $2,623 Mil.
Total Current Assets was $659 Mil.
Total Current Liabilities was $363 Mil.
Retained Earnings was $1,002 Mil.
Pre-Tax Income was -154 + 32.1 + 47.7 + 64.1 = $-10 Mil.
Interest Expense was -26.1 + -23.8 + -22.8 + -20.6 = $-93 Mil.
Revenue was 371.7 + 446 + 481.8 + 392.6 = $1,692 Mil.
Market Cap (Today) was $1,750 Mil.
Total Liabilities was $1,992 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(658.6 - 362.9)/2623.3
=0.1127

X2=Retained Earnings/Total Assets
=1002.3/2623.3
=0.3821

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(-10.1 - -93.3)/2623.3
=0.0317

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=1749.829/1991.9
=0.8785

X5=Revenue/Total Assets
=1692.1/2623.3
=0.645

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Ingevity has a Altman Z-Score of 1.95 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Ingevity  (NYSE:NGVT) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Ingevity Altman Z-Score Related Terms

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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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