Ingersoll Rand Inc (IR)

Fixed asset turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue (ttm) US$ in thousands 7,235,000 7,157,800 7,035,700 6,916,900 6,876,100 6,678,400 6,455,200 6,208,600 5,916,300 5,711,400 5,520,700 5,359,900 5,152,400 4,952,100 4,739,600 4,485,900 4,059,900 3,012,800 2,497,000 2,100,700
Property, plant and equipment US$ in thousands 842,100 853,100 830,000 742,200 711,400 685,800 645,700 648,800 624,400 587,700 608,300 635,200 648,600 619,200 607,200 713,600 609,000 807,900 832,000 829,000
Fixed asset turnover 8.59 8.39 8.48 9.32 9.67 9.74 10.00 9.57 9.48 9.72 9.08 8.44 7.94 8.00 7.81 6.29 6.67 3.73 3.00 2.53

December 31, 2024 calculation

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

The fixed asset turnover ratio of Ingersoll Rand Inc has shown a consistent upward trend over the period from March 31, 2020 to December 31, 2024. The ratio started at 2.53 in March 2020 and increased steadily to reach a peak of 10.00 in June 30, 2023. This indicates that the company's fixed assets are being utilized more efficiently to generate sales revenue.

However, there was a slight decrease in the fixed asset turnover ratio in the subsequent quarters, stabilizing around 8.59 by December 31, 2024. Despite this decrease, the ratio remains at a relatively high level, suggesting that Ingersoll Rand Inc is effectively utilizing its fixed assets to generate sales revenue compared to earlier periods.

Overall, the increasing trend in the fixed asset turnover ratio of Ingersoll Rand Inc reflects positively on the company's operational efficiency and effectiveness in utilizing its fixed assets to drive revenue generation.