Ingersoll Rand Inc (IR)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,595,500 | 1,197,500 | 1,178,100 | 1,119,300 | 1,613,000 | 1,459,500 | 1,309,200 | 1,990,200 | 2,109,600 | 2,033,000 | 3,669,900 | 1,639,600 | 1,750,900 | 1,313,300 | 1,173,600 | 555,700 | 505,500 | 406,400 | 317,500 | 263,700 |
| Short-term investments | US$ in thousands | — | 28,200 | 39,700 | 31,500 | — | 30,800 | 22,900 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.87 | 0.74 | 0.75 | 0.68 | 0.96 | 0.98 | 0.91 | 1.37 | 1.44 | 1.25 | 2.01 | 1.07 | 1.17 | 0.92 | 0.79 | 0.40 | 0.88 | 0.68 | 0.54 | 0.43 |
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 of Ingersoll-Rand Inc has shown some fluctuation over the past eight quarters, ranging from a low of 0.77 in Q1 2023 to a high of 1.52 in Q1 2022. The cash ratio indicates the company's ability to cover its short-term liabilities with its available cash and cash equivalents.
A higher cash ratio is generally preferable as it suggests that the company has a greater ability to cover its short-term obligations. In Q1 2022, Ingersoll-Rand Inc had a cash ratio of 1.52, indicating a strong liquidity position at that time.
In the more recent quarters, the cash ratio has slightly decreased, with values ranging from 0.87 to 0.99. While the cash ratio is still above 1 in these quarters, indicating that the company has enough cash to cover its short-term liabilities, the downward trend may be worth monitoring. It is essential for investors and stakeholders to continue monitoring Ingersoll-Rand Inc's cash position and liquidity management to ensure the company remains financially stable in the long run.
Peer comparison
Dec 31, 2023