Ingersoll Rand Inc (IR)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 4,163,500 4,050,400 3,967,300 4,114,900 3,862,100
Total current liabilities US$ in thousands 1,818,900 1,827,300 1,674,000 1,467,700 1,498,600
Current ratio 2.29 2.22 2.37 2.80 2.58

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,163,500K ÷ $1,818,900K
= 2.29

The current ratio of Ingersoll Rand Inc has exhibited a generally positive trend over the past five years. As of December 31, 2020, the company had a current ratio of 2.58, indicating that it had $2.58 in current assets for every $1 in current liabilities. This ratio improved to 2.80 by December 31, 2021, reflecting a strengthening ability to meet short-term obligations.

However, in the subsequent years, the current ratio declined slightly. By December 31, 2022, it decreased to 2.37, and further to 2.22 by December 31, 2023. Despite these decreases, the company's current ratio remained above 2, indicating a continued ability to cover its short-term liabilities comfortably.

As of December 31, 2024, the current ratio increased slightly to 2.29, showing a modest improvement from the previous year. Overall, Ingersoll Rand Inc has maintained a healthy current ratio above 2 over the past five years, demonstrating its strong liquidity position and ability to fulfill its short-term financial obligations.