Ingersoll Rand Inc (IR)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,882,200 | 2,325,600 | 1,988,500 | 1,404,900 | 778,300 |
| Revenue | US$ in thousands | 6,876,100 | 5,916,300 | 5,152,400 | 3,973,200 | 2,017,500 |
| Gross profit margin | 41.92% | 39.31% | 38.59% | 35.36% | 38.58% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,882,200K ÷ $6,876,100K
= 41.92%
Ingersoll-Rand Inc's gross profit margin has shown a general increasing trend over the past five years. The company's gross profit margin was 41.92% in 2023, an improvement from 39.31% in 2022 and 38.59% in 2021. This indicates that the company has been able to efficiently control its cost of goods sold and generate higher revenues relative to the cost of producing goods.
The significant improvement in gross profit margin from 2020 to 2023 (32.86% to 41.92%) suggests that Ingersoll-Rand Inc has made effective cost management decisions and possibly implemented pricing strategies that have positively impacted its profitability.
Despite a slight dip in 2019 (37.18%), the overall trend in gross profit margin indicates positive operational performance and effective management of production costs. It also suggests that the company may have enhanced operational efficiency or product pricing strategies to achieve higher margins.
It is important to continue monitoring Ingersoll-Rand Inc's gross profit margin in future periods to assess the sustainability of its profitability and to identify any potential challenges or opportunities in its operations.
Peer comparison
Dec 31, 2023