Ingersoll Rand Inc (IR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 6,876,100 | 5,916,300 | 5,152,400 | 3,973,200 | 2,017,500 |
| Receivables | US$ in thousands | 1,234,200 | 1,122,000 | 948,600 | 966,600 | 459,100 |
| Receivables turnover | 5.57 | 5.27 | 5.43 | 4.11 | 4.39 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $6,876,100K ÷ $1,234,200K
= 5.57
The receivables turnover ratio reflects how efficiently Ingersoll-Rand Inc is collecting payments from its customers. The trend of the receivables turnover ratio over the past five years shows a relatively stable performance, hovering around 5 times per year on average.
A higher receivables turnover ratio suggests that the company is collecting payments more frequently, indicating prompt collection and potentially lower credit risk. Ingersoll-Rand's receivables turnover ratio ranged between 5.08 and 5.57 over the period, showing a consistent ability to convert its accounts receivable into cash.
Overall, Ingersoll-Rand Inc has maintained a healthy level of efficiency in managing its accounts receivable, as indicated by its stable and relatively high receivables turnover ratio over the past five years. The company's ability to efficiently collect payments from customers is a positive indicator of its financial health.
Peer comparison
Dec 31, 2023