Ingersoll Rand Inc (IR)

Liquidity ratios

	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
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
Quick ratio	1.55	1.48	1.50	1.41	1.63	1.66	1.60	2.07	2.08	1.81	2.53	1.70	1.81	1.58	1.42	1.14	1.68	1.45	1.38	1.26
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

Overall, Ingersoll-Rand Inc's liquidity ratios demonstrate a stable financial position over the past eight quarters. The current ratio has remained relatively consistent, averaging around 2.25, indicating the company's ability to cover its short-term obligations with its current assets. The quick ratio also reflects a consistent trend, averaging around 1.65, suggesting the company's ability to meet its immediate liabilities without relying on inventory.

However, the cash ratio shows some fluctuations, although it remains above 1 in most quarters, indicating that Ingersoll-Rand Inc holds sufficient cash to cover its short-term obligations without relying on other current assets. The downward trend in the cash ratio from Q4 2022 to Q1 2023 warrants further monitoring to ensure that the company maintains adequate cash reserves for unforeseen circumstances.

In summary, Ingersoll-Rand Inc's liquidity ratios illustrate a strong liquidity position, with a current ratio above 2 and a quick ratio above 1.5, indicating a healthy balance between current assets and liabilities. The slight fluctuations in the cash ratio should be monitored to ensure continued financial stability.

Additional liquidity measure

		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 conversion cycle	days	83.78	105.52	109.79	111.29	94.30	98.39	100.89	97.11	88.39	96.30	89.29	99.99	111.82	184.33	210.32	266.96	135.96	111.53	118.43	115.41

The cash conversion cycle of Ingersoll-Rand Inc has exhibited some variability over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

In Q1 2023, the cash conversion cycle was 111.29 days, indicating that the company took slightly over three months to complete the cycle. This was the highest cycle duration in the data set, suggesting potentially slower inventory turnover or collection of accounts receivable during that period.

In Q4 2023, the cash conversion cycle decreased to 83.78 days, the shortest duration in the data set. This could indicate improvements in inventory management, sales collection processes, or a more efficient overall cash conversion cycle during that quarter.

Overall, Ingersoll-Rand Inc has shown fluctuations in its cash conversion cycle, with durations ranging from around 83 to 111 days over the past eight quarters. Analyzing the factors contributing to these variations could provide insights into the company's operational efficiency, working capital management, and overall financial health.