Ingersoll Rand Inc (IR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,050,400 | 3,967,300 | 4,114,900 | 3,862,100 | 1,543,900 |
| Total current liabilities | US$ in thousands | 1,827,300 | 1,674,000 | 1,467,700 | 1,498,600 | 574,600 |
| Current ratio | 2.22 | 2.37 | 2.80 | 2.58 | 2.69 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,050,400K ÷ $1,827,300K
= 2.22
Ingersoll-Rand Inc's current ratio has shown some fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
The current ratio decreased from 2.69 in 2019 to 2.58 in 2020, indicating a potential strain on the company's short-term liquidity position. However, the ratio improved in 2021 to 2.80, which suggests a more favorable liquidity position compared to the previous year.
In 2022, the current ratio further increased to 2.37, indicating continued strength in the company's ability to cover its short-term liabilities with current assets. However, in 2023, there was a slight decrease to 2.22, which may raise concerns about the company's short-term liquidity position, albeit still being at a reasonable level.
Overall, Ingersoll-Rand Inc's current ratio has shown some variability over the years, but it generally remains above 2, indicating a healthy liquidity position. It is essential for the company to closely monitor its current assets and liabilities to ensure it can meet its short-term obligations effectively.
Peer comparison
Dec 31, 2023