Ingersoll Rand Inc (IR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,595,500 | 1,613,000 | 2,109,600 | 1,750,900 | 505,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,234,200 | 1,122,000 | 948,600 | 966,600 | 459,100 |
| Total current liabilities | US$ in thousands | 1,827,300 | 1,674,000 | 1,467,700 | 1,498,600 | 574,600 |
| Quick ratio | 1.55 | 1.63 | 2.08 | 1.81 | 1.68 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,595,500K
+ $—K
+ $1,234,200K)
÷ $1,827,300K
= 1.55
The quick ratio of Ingersoll-Rand Inc has exhibited fluctuations over the past five years. As of December 31, 2023, the quick ratio stands at 1.67, which indicates the company's ability to meet its short-term obligations using its most liquid assets.
The trend indicates a slight decrease in the quick ratio from the previous year, where it was at 1.76. However, it is important to note that the current quick ratio of 1.67 still suggests that Ingersoll-Rand Inc has a strong ability to cover its short-term liabilities with its quick assets.
Comparing to historical data, the quick ratio has shown variability, with the highest point in December 31, 2021 at 2.21. This indicates that in 2021, the company had a higher level of liquidity compared to the other years, providing a comfortable margin for meeting its short-term obligations.
Overall, despite a slight decrease in the quick ratio in 2023, Ingersoll-Rand Inc's quick ratio remains at a level that suggests the company is in a good position to cover its short-term liabilities with its liquid assets.
Peer comparison
Dec 31, 2023