Ingersoll Rand Inc (IR)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 3,170,000 2,882,200 2,325,600 1,988,500 1,404,900
Revenue US$ in thousands 7,235,000 6,876,100 5,916,300 5,152,400 3,973,200
Gross profit margin 43.81% 41.92% 39.31% 38.59% 35.36%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $3,170,000K ÷ $7,235,000K
= 43.81%

The gross profit margin of Ingersoll Rand Inc has shown a consistent upward trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 35.36% in 2020, the gross profit margin increased to 38.59% in 2021, reflecting an improvement in the company's ability to generate profits from its goods or services after accounting for direct costs.

In the subsequent years, the gross profit margin continued to rise, reaching 39.31% in 2022, 41.92% in 2023, and finally peaking at 43.81% in 2024. This indicates a positive trend in managing production costs and pricing strategies, leading to a higher percentage of revenue retained as gross profit.

The steady growth in the gross profit margin suggests that Ingersoll Rand Inc has been successful in enhancing operational efficiency, controlling costs, and optimizing pricing strategies over the years. This improvement bodes well for the company's profitability and financial performance, as a higher gross profit margin indicates better profitability potential and financial health.