Ingersoll Rand Inc (IR)

Number of days of payables

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
Payables turnover 4.82 5.41 5.31 5.70 4.98 5.92 5.77 5.12 4.61 5.05 4.85 4.70 4.72 4.76 4.36 4.20 4.92 3.14 2.42 1.75
Number of days of payables days 75.75 67.50 68.72 64.09 73.22 61.70 63.22 71.24 79.16 72.25 75.22 77.64 77.35 76.75 83.69 86.89 74.14 116.06 150.53 209.02

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 4.82
= 75.75

Ingersoll Rand Inc's number of days of payables has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The number of days of payables decreased significantly from 209.02 days on March 31, 2020, to 67.50 days on September 30, 2024. This indicates that the company has been able to manage its payables more efficiently over time, potentially negotiating better payment terms with its suppliers or improving internal processes related to accounts payable.

The decrease in the number of days of payables could also suggest that Ingersoll Rand Inc is paying its suppliers more promptly, which may enhance relationships with suppliers or avoid any potential late payment penalties. However, it is essential to strike a balance between managing payables efficiently and ensuring sufficient cash flow for the business's operations.

Overall, the decreasing trend in Ingersoll Rand Inc's number of days of payables reflects improved working capital management, which can positively impact the company's liquidity and financial stability.