Ingersoll Rand Inc (IR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.81% | 41.92% | 39.31% | 38.59% | 35.36% |
| Operating profit margin | 17.97% | 16.93% | 13.81% | 10.98% | 1.50% |
| Pretax margin | 15.22% | 14.82% | 12.75% | 10.49% | -0.55% |
| Net profit margin | 11.59% | 11.32% | 10.22% | 10.92% | -0.84% |
Ingersoll Rand Inc's profitability ratios show a positive trend over the past five years.
1. Gross Profit Margin:
- The gross profit margin has been steadily increasing from 35.36% in 2020 to 43.81% in 2024.
- This indicates that Ingersoll Rand has been able to increase its profitability on sales after accounting for the cost of goods sold.
2. Operating Profit Margin:
- The operating profit margin shows substantial growth, rising from 1.50% in 2020 to 17.97% in 2024.
- This suggests that the company has been able to control its operating expenses more effectively and generate higher profits from its core business operations.
3. Pretax Margin:
- The pretax margin also shows a positive trend, improving from -0.55% in 2020 to 15.22% in 2024.
- This indicates that Ingersoll Rand has been able to efficiently manage its pre-tax earnings relative to its total revenue.
4. Net Profit Margin:
- The net profit margin has shown consistent growth, increasing from -0.84% in 2020 to 11.59% in 2024.
- This indicates that the company has been successful in managing its overall expenses and generating higher profits for its shareholders after all expenses have been accounted for.
In summary, Ingersoll Rand Inc has demonstrated a strong improvement in its profitability over the past five years, with increasing margins across all key metrics. This positive trend reflects the company's ability to effectively manage costs, improve operational efficiency, and drive profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.22% | 7.48% | 5.54% | 3.73% | 0.37% |
| Return on assets (ROA) | 4.66% | 5.00% | 4.10% | 3.71% | -0.21% |
| Return on total capital | 12.77% | 12.01% | 9.32% | 6.98% | 0.98% |
| Return on equity (ROE) | 8.24% | 7.96% | 6.58% | 6.25% | -0.37% |
Ingersoll Rand Inc's profitability ratios have exhibited a positive trend over the last five years. The Operating return on assets (Operating ROA) increased from 0.37% in 2020 to 7.22% in 2024, indicating the company's ability to generate operating profits from its assets has improved significantly.
Similarly, the Return on assets (ROA) ratio also displayed an upward trend, rising from -0.21% in 2020 to 4.66% in 2024. This implies that the overall profitability generated by the company's assets has been increasing.
The Return on total capital metric saw a substantial growth from 0.98% in 2020 to 12.77% in 2024, representing an efficient utilization of both equity and debt capital to generate returns for stakeholders.
Lastly, the Return on equity (ROE) ratio climbed from -0.37% in 2020 to 8.24% in 2024, demonstrating an improvement in the company's ability to generate profits for its shareholders relative to the equity invested in the business.
In summary, Ingersoll Rand Inc has shown consistent improvement in its profitability ratios over the specified period, reflecting enhanced efficiency and effectiveness in utilizing its assets and capital to drive earnings and create value for its shareholders.