Ingevity (Ingevity) Interest Coverage : 2.05 (As of Mar. 2024)

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What is Ingevity Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ingevity's Operating Income for the three months ended in Mar. 2024 was $46 Mil. Ingevity's Interest Expense for the three months ended in Mar. 2024 was $-22 Mil. Ingevity's interest coverage for the quarter that ended in Mar. 2024 was 2.05. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ingevity's Interest Coverage or its related term are showing as below:

NGVT' s Interest Coverage Range Over the Past 10 Years
Min: 2.41 Med: 7.08 Max: 12.85
Current: 2.41

NGVT's Interest Coverage is ranked worse than
83.49% of 1181 companies
in the Chemicals industry
Industry Median: 9.74 vs NGVT: 2.41

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ingevity Interest Coverage Historical Data

The historical data trend for Ingevity's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Ingevity Interest Coverage Chart

Ingevity Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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5.36

6.23

5.94

5.52

2.75

Ingevity Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Interest Coverage	Get a 7-Day Free Trial															3.54	4.09	3.41	0.34	2.05

Competitive Comparison of Ingevity's Interest Coverage

For the Specialty Chemicals subindustry, Ingevity's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Ingevity's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ingevity's Interest Coverage falls into.

Ingevity Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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

Here, for the fiscal year that ended in Dec. 2023, Ingevity's Interest Expense was $-93 Mil. Its Operating Income was $256 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,431 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	256.4	/	-93.3
	=	2.75

Ingevity's Interest Coverage for the quarter that ended in Mar. 2024 is calculated as

Here, for the three months ended in Mar. 2024, Ingevity's Interest Expense was $-22 Mil. Its Operating Income was $46 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,409 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2024 )	/	Interest Expense (Q: Mar. 2024 )
	=	-1	*	45.7	/	-22.3
	=	2.05

The higher the ratio, the stronger the company's Financial Strength is.

Ingevity (NYSE:NGVT) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Ingevity Interest Coverage Related Terms

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

Ingevity (Ingevity) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Ingevity Corp (NYSE:NGVT) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

IGX:Germany

Address

4920 O'Hear Avenue, Suite 400, North Charleston, SC, USA, 29405

Website

https://www.ingevity.com

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