Ingersoll Rand Inc (IR)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 3.85 3.46 3.43 3.76 3.99 3.62 3.51 3.34 3.50 3.49 3.36 3.45 3.70 3.49 3.62 3.40 3.68 1.95 1.61 1.23
Receivables turnover 5.42 5.33 5.41 5.55 5.57 5.49 5.29 4.99 5.27 5.53 5.42 5.29 5.43 5.34 5.06 4.59 4.20 3.22 2.71 2.04
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
Working capital turnover 3.09 2.96 3.38 3.03 3.09 3.21 3.07 3.15 2.58 2.57 2.64 1.96 1.95 2.06 1.22 1.71 1.72 1.48 1.35 1.36

Ingersoll Rand Inc's activity ratios reflect its efficiency in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- Ingersoll Rand's inventory turnover has been gradually increasing from 1.23 in March 2020 to 3.85 in December 2024. This indicates that the company is selling its inventory more frequently over the years.

2. Receivables Turnover:
- The receivables turnover ratio has also shown an upward trend, rising from 2.04 in March 2020 to 5.42 in June 2024. This suggests that the company is collecting its accounts receivable at a faster pace.

3. Payables Turnover:
- The payables turnover ratio demonstrates the speed at which the company is paying its suppliers. Ingersoll Rand's payables turnover has fluctuated but generally remained stable, indicating consistent payment terms with its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. Ingersoll Rand's ratio has shown an increasing trend, indicating improved efficiency in converting working capital into revenue.

Overall, the analysis of these activity ratios suggests that Ingersoll Rand Inc has been effectively managing its inventory, receivables, payables, and working capital to drive operational efficiency and enhance its financial performance over the years.

Average number of days

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
Days of inventory on hand (DOH) days 94.73 105.50 106.50 97.13 91.49 100.75 104.04 109.42 104.23 104.67 108.77 105.70 98.54 104.72 100.92 107.29 99.07 187.16 226.05 297.45
Days of sales outstanding (DSO) days 67.37 68.44 67.51 65.71 65.51 66.46 68.97 73.11 69.22 65.97 67.34 69.04 67.20 68.33 72.07 79.58 86.90 113.23 134.80 178.53
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

Ingersoll Rand Inc's activity ratios indicate how efficiently the company manages its working capital.

1. Days of Inventory on Hand (DOH): In the period from March 2020 to December 2024, Ingersoll Rand Inc's DOH showed a decreasing trend. This suggests that the company was able to reduce the number of days it holds inventory on hand, indicating better inventory management efficiency over time.

2. Days of Sales Outstanding (DSO): Over the same period, the DSO for Ingersoll Rand Inc also decreased. This indicates that the company was able to collect receivables more quickly, improving its cash conversion cycle and potentially reducing credit risk.

3. Number of Days of Payables: The number of days of payables for Ingersoll Rand Inc decreased from March 2020 to December 2024. A decreasing trend in this ratio suggests that the company was taking longer to pay its suppliers over time, possibly to preserve cash or take advantage of credit terms.

Overall, the trend in these activity ratios for Ingersoll Rand Inc indicates improvements in inventory management, receivables collection, and payment terms with suppliers over the period analyzed.

Long-term

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
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
Total asset turnover 0.40 0.39 0.39 0.45 0.44 0.44 0.43 0.41 0.40 0.40 0.39 0.35 0.34 0.33 0.29 0.28 0.25 0.19 0.16 0.14

The Fixed Asset Turnover ratio of Ingersoll Rand Inc has shown a consistent increasing trend over the past few years, indicating that the company has been effectively generating sales from its fixed assets. The ratio increased from 2.53 in March 2020 to 8.59 in December 2024, with a peak of 10.00 in June 2023. This suggests that the company has been able to efficiently utilize its fixed assets to generate revenue.

In terms of Total Asset Turnover, there has been a gradual improvement in the company's ability to generate sales from its total assets. The ratio increased from 0.14 in March 2020 to 0.40 in December 2024. This indicates that Ingersoll Rand has been able to generate more revenue relative to its total assets over the years, reflecting improved efficiency in asset utilization.

Overall, both the Fixed Asset Turnover and Total Asset Turnover ratios suggest that Ingersoll Rand has been successful in effectively utilizing its assets to generate sales and improve its operational efficiency over the analyzed period.