Ingersoll Rand Inc (IR)

Quick ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cash US$ in thousands 1,541,200 1,376,900 1,062,500 1,452,300 1,595,500 1,197,500 1,178,100 1,119,300 1,613,000 1,459,500 1,309,200 1,990,200 2,109,600 2,033,000 3,669,900 1,639,600 1,750,900 1,313,300 1,173,600 555,700
Short-term investments US$ in thousands — — — — — — — — — — — — — — — — — — — —
Receivables US$ in thousands 1,335,400 1,342,200 1,301,400 1,245,200 1,234,200 1,216,100 1,219,800 1,243,600 1,122,000 1,032,300 1,018,500 1,013,900 948,600 927,000 935,800 978,100 966,600 934,600 922,200 1,027,500
Total current liabilities US$ in thousands 1,818,900 1,775,600 1,764,600 1,724,600 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
Quick ratio 1.58 1.53 1.34 1.56 1.55 1.46 1.48 1.39 1.63 1.64 1.59 2.07 2.08 1.81 2.53 1.70 1.81 1.58 1.42 1.14

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, also known as the acid-test ratio, is a liquidity ratio that measures a company's ability to use its most liquid assets to cover its current liabilities. A quick ratio of 1 or higher is generally considered acceptable as it indicates that the company has enough liquid assets to cover its short-term obligations.

Looking at the data provided for Ingersoll Rand Inc, we can observe fluctuations in the quick ratio over the years. The quick ratio has shown a generally positive trend, increasing from 1.14 as of March 31, 2020, to a peak of 2.53 as of June 30, 2021. This significant increase indicates a strengthened ability to cover short-term liabilities with liquid assets.

However, there have been fluctuations in the quick ratio since then, with some quarters showing declines. For instance, the quick ratio decreased to 1.34 as of June 30, 2024. This decrease may raise concerns about the company's ability to cover its short-term obligations with liquid assets during that period.

Overall, Ingersoll Rand Inc has generally maintained a quick ratio above 1, which suggests a healthy liquidity position. It is essential for the company to continue monitoring and managing its liquidity to ensure it can meet its short-term financial obligations efficiently.