Ingersoll Rand Inc (IR)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 1,164,300 | 817,300 | 565,700 | 59,600 | 194,100 |
| Revenue | US$ in thousands | 6,876,100 | 5,916,300 | 5,152,400 | 3,973,200 | 2,017,500 |
| Operating profit margin | 16.93% | 13.81% | 10.98% | 1.50% | 9.62% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $1,164,300K ÷ $6,876,100K
= 16.93%
The operating profit margin of Ingersoll-Rand Inc has exhibited fluctuations over the past five years. In 2023, the operating profit margin was 18.06%, showing a significant improvement compared to the previous year, where it stood at 14.91%. This increase indicates enhanced profitability in the company's operations. In 2021, the operating profit margin was 12.18%, reflecting a moderate growth trend from 2020, when it was notably lower at 2.15%. The margin peaked in 2019 at 14.32% before experiencing a decline in the following years.
Overall, the recent improvement in the operating profit margin suggests that the company has been successful in generating more profit from its core business activities in 2023 compared to the earlier periods. This trend indicates potentially efficient cost management, increased sales, or a combination of both, contributing to the growth in operating profitability. However, further analysis of the company's financial performance and underlying factors driving this margin change would be necessary to provide a more comprehensive understanding of its operating efficiency.
Peer comparison
Dec 31, 2023