Ingersoll Rand Inc (IR)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash US$ in thousands 1,541,200 1,595,500 1,613,000 2,109,600 1,750,900
Short-term investments US$ in thousands — — — — —
Receivables US$ in thousands 1,335,400 1,234,200 1,122,000 948,600 966,600
Total current liabilities US$ in thousands 1,818,900 1,827,300 1,674,000 1,467,700 1,498,600
Quick ratio 1.58 1.55 1.63 2.08 1.81

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,541,200K + $—K + $1,335,400K) ÷ $1,818,900K
= 1.58

The quick ratio of Ingersoll Rand Inc has shown varying trends over the past five years, ranging from 1.55 to 2.08. It indicates the company's ability to cover its short-term liabilities with its most liquid assets. In general, a quick ratio above 1 suggests that the company has an adequate level of liquid assets to cover its short-term obligations.

In 2021, the quick ratio increased to 2.08, reflecting a strong liquidity position compared to the previous year. However, there was a slight decline in 2022 to 1.63, which may indicate a decrease in liquid assets relative to current liabilities.

Further, in 2023 and 2024, the quick ratio remained relatively stable around 1.55 to 1.58, indicating a consistent ability to meet short-term obligations with liquid assets. Overall, the quick ratio values suggest that Ingersoll Rand Inc has maintained a healthy liquidity position throughout the years, with fluctuations that should be monitored to ensure continued financial stability.