Ingersoll Rand Inc (IR)
Receivables turnover
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Revenue | US$ in thousands | 7,235,000 | 6,876,100 | 5,916,300 | 5,152,400 | 3,973,200 |
Receivables | US$ in thousands | 1,335,400 | 1,234,200 | 1,122,000 | 948,600 | 966,600 |
Receivables turnover | 5.42 | 5.57 | 5.27 | 5.43 | 4.11 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,235,000K ÷ $1,335,400K
= 5.42
Ingersoll Rand Inc's receivables turnover has shown an increasing trend over the past five years. The ratio increased from 4.11 in December 31, 2020, to 5.43 in December 31, 2021, indicating that the company was able to convert its accounts receivables into cash more efficiently in the following year.
Subsequently, the ratio remained relatively stable, ranging between 5.27 and 5.57 from December 31, 2022, to December 31, 2024. This suggests that Ingersoll Rand Inc has maintained a consistent ability to collect payments from its customers in a timely manner.
Overall, a higher receivables turnover ratio indicates that the company is efficiently managing its accounts receivables and collecting cash from customers promptly. This trend is generally viewed positively by investors and creditors as it demonstrates the company's effectiveness in managing its working capital and liquidity.
Peer comparison
Dec 31, 2024