Ingersoll Rand Inc (IR)

Cash ratio

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
Cash and cash equivalents US$ in thousands 1,541,200 1,376,900 1,062,500 1,452,300 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
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
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
Cash ratio 0.85 0.78 0.60 0.84 0.87 0.72 0.73 0.66 0.96 0.96 0.89 1.37 1.44 1.25 2.01 1.07 1.17 0.92 0.79 0.40

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,541,200K + $—K) ÷ $1,818,900K
= 0.85

The cash ratio of Ingersoll Rand Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. Starting at 0.40 on March 31, 2020, the cash ratio improved steadily to reach its peak at 2.01 on June 30, 2021. This indicates that the company had $2.01 in cash and cash equivalents for every $1 of current liabilities at that point.

Subsequently, the cash ratio declined, indicating a potential decrease in the company's ability to cover its short-term liabilities solely with cash and cash equivalents. By September 30, 2022, the ratio had fallen to 0.96, and it continued to fluctuate around this level in the following periods, with occasional increases and decreases.

Overall, the cash ratio remained within a range of 0.60 to 2.01 during the observed period, suggesting some variability in the company's liquidity position. It is essential for stakeholders to monitor this ratio closely to assess the company's ability to meet its short-term obligations using its available cash resources.