Ingersoll Rand Inc (IR)

Fixed asset turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 7,235,000 6,876,100 5,916,300 5,152,400 3,973,200
Property, plant and equipment US$ in thousands 842,100 711,400 624,400 648,600 609,000
Fixed asset turnover 8.59 9.67 9.48 7.94 6.52

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,235,000K ÷ $842,100K
= 8.59

Ingersoll Rand Inc's fixed asset turnover has shown a consistent increase over the years, indicating an improvement in the company's efficiency in generating sales from its fixed assets. The ratio has increased from 6.52 in December 2020 to 8.59 in December 2024. This upward trend suggests that Ingersoll Rand has been able to utilize its fixed assets more effectively to generate revenue. A higher fixed asset turnover ratio generally indicates better operational efficiency and asset utilization. However, it is important to assess the trend in conjunction with other factors to get a comprehensive understanding of the company's overall performance and financial health.