Ingersoll Rand Inc (IR)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,050,400 | 3,733,400 | 3,727,000 | 3,672,400 | 3,967,300 | 3,744,800 | 3,554,900 | 4,186,000 | 4,114,900 | 4,030,900 | 5,712,400 | 4,153,900 | 3,862,100 | 3,459,800 | 3,326,800 | 2,929,400 | 1,543,900 | 1,494,100 | 1,463,900 | 1,398,300 |
| 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 |
| Current ratio | 2.22 | 2.26 | 2.29 | 2.16 | 2.37 | 2.46 | 2.43 | 2.88 | 2.80 | 2.47 | 3.13 | 2.70 | 2.58 | 2.43 | 2.25 | 2.11 | 2.69 | 2.51 | 2.48 | 2.27 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,050,400K ÷ $1,827,300K
= 2.22
The current ratio of Ingersoll-Rand Inc has shown a decreasing trend over the past eight quarters, from 2.88 in Q1 2022 to 2.22 in Q4 2023. This indicates a deterioration in the company's short-term liquidity position, as the current ratio measures the company's ability to cover its short-term obligations with its current assets.
Although the current ratio remains above 1, which suggests that the company has more current assets than current liabilities, the downward trend raises some concerns about its ability to meet its short-term financial obligations. A current ratio of 2.22 in Q4 2023 means that the company has $2.22 in current assets for every $1 in current liabilities.
It is important for investors and stakeholders to monitor this trend closely, as a declining current ratio may indicate potential liquidity issues or inefficiencies in managing current assets and liabilities. Further analysis of the components of current assets and liabilities would provide deeper insights into the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023