Ingersoll Rand Inc (IR)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 1,300,100 1,164,300 817,300 565,700 59,600
Revenue US$ in thousands 7,235,000 6,876,100 5,916,300 5,152,400 3,973,200
Operating profit margin 17.97% 16.93% 13.81% 10.98% 1.50%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,300,100K ÷ $7,235,000K
= 17.97%

Ingersoll Rand Inc's operating profit margin has shown a positive trend over the years, increasing from 1.50% on December 31, 2020, to 10.98% on December 31, 2021, further to 13.81% on December 31, 2022, and significantly improving to 16.93% on December 31, 2023, and finally reaching 17.97% on December 31, 2024. This indicates that the company's operational efficiency and profitability have been improving steadily. The consistent growth in operating profit margin reflects Ingersoll Rand's ability to effectively manage its operating expenses relative to its sales revenue, resulting in higher profitability for the company. Strong operating profit margins are a positive indicator of the company's financial health and long-term sustainability.