Ingersoll Rand Inc (IR)

Payables turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cost of revenue US$ in thousands 4,065,000 3,993,900 3,590,700 3,163,900 2,568,300
Payables US$ in thousands 843,600 801,200 778,700 670,500 536,400
Payables turnover 4.82 4.98 4.61 4.72 4.79

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $4,065,000K ÷ $843,600K
= 4.82

The payables turnover ratio for Ingersoll Rand Inc has exhibited a somewhat consistent trend over the past five years. The ratio decreased slightly from 4.79 in 2020 to 4.72 in 2021, indicating that the company took slightly longer to pay its suppliers in 2021. This trend continued as the payables turnover further decreased to 4.61 in 2022.

However, in 2023, there was a notable improvement as the payables turnover ratio increased to 4.98, suggesting that Ingersoll Rand Inc was more efficient in paying its suppliers that year. This improvement was maintained in 2024, with the ratio standing at 4.82, although slightly lower than in 2023.

Overall, the payables turnover ratio for Ingersoll Rand Inc indicates the company's ability to efficiently manage its accounts payable and its relationships with suppliers over the analyzed period, with a short-term fluctuation in the trend.