Ingersoll Rand Inc (IR)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 6,876,100 | 6,678,400 | 6,455,200 | 6,208,600 | 5,916,300 | 5,711,400 | 5,520,700 | 5,359,900 | 5,152,400 | 4,952,100 | 4,739,600 | 4,485,900 | 4,059,900 | 3,012,800 | 2,497,000 | 2,100,700 | 2,017,500 | 2,558,800 | 2,651,400 | 2,690,500 |
| Receivables | US$ in thousands | 1,234,200 | 1,216,100 | 1,219,800 | 1,243,600 | 1,122,000 | 1,032,300 | 1,018,500 | 1,013,900 | 948,600 | 927,000 | 935,800 | 978,100 | 966,600 | 934,600 | 922,200 | 1,027,500 | 459,100 | 458,400 | 498,600 | 509,900 |
| Receivables turnover | 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 | 4.39 | 5.58 | 5.32 | 5.28 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $6,876,100K ÷ $1,234,200K
= 5.57
The receivables turnover ratio for Ingersoll-Rand Inc has exhibited a relatively stable trend over the past eight quarters. The ratio ranged from 4.99 to 5.57, indicating that, on average, the company collects its accounts receivable approximately 5 times a year. This demonstrates that Ingersoll-Rand's collection process is efficient, as a higher turnover ratio signifies quicker collection of outstanding receivables.
Despite minor fluctuations, the overall consistency in the receivables turnover suggests that the company manages its credit sales effectively and has a systematic approach to collecting on its receivables. This stability indicates a healthy liquidity position and efficient working capital management within the organization.
It is important for Ingersoll-Rand to continue monitoring its receivables turnover ratio to ensure timely collection of outstanding balances and maintain a strong cash flow position. Additionally, any significant deviations or trends in the ratio should be further investigated to identify potential issues or areas for improvement in the accounts receivable management process.
Peer comparison
Dec 31, 2023