Ingersoll Rand Inc (IR)
Working capital 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 |
Total current assets | US$ in thousands | 4,163,500 | 4,050,400 | 3,967,300 | 4,114,900 | 3,862,100 |
Total current liabilities | US$ in thousands | 1,818,900 | 1,827,300 | 1,674,000 | 1,467,700 | 1,498,600 |
Working capital turnover | 3.09 | 3.09 | 2.58 | 1.95 | 1.68 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,235,000K ÷ ($4,163,500K – $1,818,900K)
= 3.09
The working capital turnover for Ingersoll Rand Inc has shown a consistent and significant improvement over the past five years. Starting at 1.68 in December 31, 2020, the ratio increased to 1.95 by December 31, 2021, demonstrating a steady upward trend. Subsequently, the ratio continued to rise to 2.58 by December 31, 2022, and further improved to 3.09 by both December 31, 2023, and December 31, 2024.
This upward trend indicates that Ingersoll Rand Inc has been able to more efficiently utilize its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is effectively managing its working capital by minimizing excess holdings and efficiently converting it into sales.
Overall, the increasing trend in working capital turnover indicates improved efficiency in managing working capital and is a positive indicator for the company's operational performance and potentially stronger financial health.
Peer comparison
Dec 31, 2024