Ingersoll Rand Inc (IR)

Working capital turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Revenue (ttm) US$ in thousands 7,235,000 7,157,800 7,035,700 6,916,900 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
Total current assets US$ in thousands 4,163,500 4,191,200 3,843,200 4,006,800 4,050,400 3,733,400 3,727,000 3,672,400 3,967,300 3,744,800 3,554,900 4,186,000 4,114,900 4,030,900 5,712,400 4,153,900 3,862,100 3,459,800 3,326,800 2,929,400
Total current liabilities US$ in thousands 1,818,900 1,775,600 1,764,600 1,724,600 1,827,300 1,654,700 1,624,100 1,700,100 1,674,000 1,523,000 1,464,800 1,453,600 1,467,700 1,632,600 1,823,000 1,536,300 1,498,600 1,425,800 1,478,200 1,390,000
Working capital turnover 3.09 2.96 3.38 3.03 3.09 3.21 3.07 3.15 2.58 2.57 2.64 1.96 1.95 2.06 1.22 1.71 1.72 1.48 1.35 1.36

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,235,000K ÷ ($4,163,500K – $1,818,900K)
= 3.09

Ingersoll Rand Inc's working capital turnover has exhibited fluctuations over the past few years, indicating changes in the efficiency of the company's working capital management. The working capital turnover ratio measures how effectively the company is utilizing its working capital to generate sales revenue.

From March 31, 2020, to June 30, 2022, the working capital turnover ratio generally improved, indicating that the company was able to generate more revenue from its working capital. This could suggest improved efficiency in managing the company's current assets and liabilities.

However, there was a slight decline in the ratio from June 30, 2022, to September 30, 2024, showing a dip in the efficiency of working capital management. This might signal challenges in optimizing the level of working capital to support the company's operations effectively.

Overall, the trend in the working capital turnover ratio for Ingersoll Rand Inc reflects a mix of positive and negative signals regarding the company's ability to efficiently utilize its working capital to drive sales. It is essential for the company to closely monitor and potentially improve its working capital management practices to ensure optimal utilization of resources.