Ingersoll Rand Inc (IR)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 1,595,500 1,613,000 2,109,600 1,750,900 505,500
Short-term investments US$ in thousands
Total current liabilities US$ in thousands 1,827,300 1,674,000 1,467,700 1,498,600 574,600
Cash ratio 0.87 0.96 1.44 1.17 0.88

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,595,500K + $—K) ÷ $1,827,300K
= 0.87

The cash ratio for Ingersoll-Rand Inc has been fluctuating over the past five years, ranging from 0.99 to 1.56. A higher cash ratio indicates a company has a larger proportion of its current liabilities covered by cash and cash equivalents.

In 2021, the cash ratio was at its highest at 1.56, suggesting that the company had a strong ability to cover its short-term obligations with its available cash reserves. However, in 2023, the cash ratio decreased to 0.99, which may indicate a potential decrease in liquidity or an increase in short-term liabilities relative to cash holdings.

Overall, it is important to monitor the trend of the cash ratio over time to assess the company's liquidity position and its ability to meet its short-term obligations using available cash resources.


Peer comparison

Dec 31, 2023