Ingersoll Rand Inc (IR)
Total asset 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 |
| Total assets | US$ in thousands | 15,563,500 | 14,765,900 | 15,154,500 | 16,058,600 | 4,628,400 |
| Total asset turnover | 0.44 | 0.40 | 0.34 | 0.25 | 0.44 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $6,876,100K ÷ $15,563,500K
= 0.44
Ingersoll-Rand Inc's total asset turnover has shown fluctuating trends over the past five years, ranging from 0.31 to 0.53. The total asset turnover ratio indicates how efficiently the company is utilizing its assets to generate revenue. A higher turnover ratio generally suggests better asset utilization.
In the latest year, as of December 31, 2023, Ingersoll-Rand Inc's total asset turnover stood at 0.44, which represents a slight increase compared to the previous year's ratio of 0.40. This improvement suggests that the company has become more efficient in generating revenue from its assets.
However, it is important to note that the total asset turnover ratio is on the lower side compared to the past five years, indicating a potential decrease in asset efficiency. In analyzing the trend over time, it appears that the company experienced a significant decline in asset turnover from 2019 to 2021, followed by a gradual recovery in the subsequent years.
Further investigation into the factors driving these fluctuations in asset turnover would provide valuable insights into the company's operational and strategic performance. Overall, Ingersoll-Rand Inc's total asset turnover indicates fluctuations in asset efficiency over the past five years, with a recent slight improvement.
Peer comparison
Dec 31, 2023