Ingersoll Rand Inc (IR)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 2,017,500 | 2,558,800 | 2,651,400 | 2,690,500 |
| Property, plant and equipment | US$ in thousands | 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 | 326,600 | 334,000 | 345,100 | 349,500 |
| Fixed asset turnover | 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 | 6.18 | 7.66 | 7.68 | 7.70 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $6,876,100K ÷ $711,400K
= 9.67
The fixed asset turnover of Ingersoll-Rand Inc has been relatively stable over the past eight quarters, ranging from a low of 8.06 in Q1 2022 to a high of 10.00 in Q2 2023. This ratio measures the efficiency with which the company generates sales revenue from its investments in fixed assets. A higher fixed asset turnover indicates that the company is utilizing its fixed assets more effectively to generate sales.
Ingersoll-Rand Inc's fixed asset turnover has shown a generally positive trend, with an increasing trend from Q1 2022 to Q2 2023. This suggests that the company has been improving its efficiency in generating sales revenue from its fixed assets over this period. However, the slight decrease in Q3 2023 compared to Q2 2023 may warrant further investigation to understand the underlying factors affecting the company's fixed asset utilization efficiency.
Overall, Ingersoll-Rand Inc's stable and relatively high fixed asset turnover ratios indicate that the company is effectively managing its fixed assets to generate sales revenue, which is a positive sign for its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023