Ingersoll Rand Inc (IR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,876,100 | 5,916,300 | 5,152,400 | 3,973,200 | 2,017,500 |
| Property, plant and equipment | US$ in thousands | 711,400 | 624,400 | 648,600 | 609,000 | 326,600 |
| Fixed asset turnover | 9.67 | 9.48 | 7.94 | 6.52 | 6.18 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $6,876,100K ÷ $711,400K
= 9.67
The fixed asset turnover ratio for Ingersoll-Rand Inc has shown a generally positive trend over the past five years, indicating the company's efficiency in generating sales revenue from its investment in fixed assets.
The ratio increased steadily from 7.51 in 2019 to 9.67 in 2023. This suggests that the company has been able to utilize its fixed assets more effectively to generate revenue over time.
A higher fixed asset turnover ratio typically indicates that a company is efficiently using its fixed assets to generate sales. It shows that the company is able to generate more sales revenue per dollar invested in fixed assets.
Overall, the increasing trend in Ingersoll-Rand Inc's fixed asset turnover ratio is a positive indicator of the company's operational efficiency and effective management of its fixed assets.
Peer comparison
Dec 31, 2023