Ingersoll Rand Inc (IR)
Working capital 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 |
| Total current assets | US$ in thousands | 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 | 1,543,900 | 1,494,100 | 1,463,900 | 1,398,300 |
| Total current liabilities | US$ in thousands | 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 | 574,600 | 595,800 | 591,300 | 616,200 |
| Working capital turnover | 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 | 2.08 | 2.85 | 3.04 | 3.44 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,876,100K ÷ ($4,050,400K – $1,827,300K)
= 3.09
Ingersoll-Rand Inc's working capital turnover has shown a generally increasing trend over the past eight quarters, indicating improvements in the efficiency of the company's working capital management. The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue.
In Q1 2022, the company had a working capital turnover of 1.87, which means that for every dollar of working capital, the company generated $1.87 in revenue. This ratio increased steadily over subsequent quarters, reaching a peak of 3.21 in Q3 2023. This suggests that the company has been able to generate more revenue with each dollar of working capital as time progressed.
On average, Ingersoll-Rand Inc's working capital turnover for the past eight quarters was 2.77. A higher working capital turnover ratio indicates that the company is efficiently managing its working capital to support sales and operations. It also suggests that the company has a shorter cash-to-cash cycle, which can lead to improved liquidity and financial health.
Overall, the increasing trend in Ingersoll-Rand Inc's working capital turnover ratio signals effective management of working capital and a potential improvement in operational efficiency and profitability.
Peer comparison
Dec 31, 2023