Ingersoll Rand Inc (IR)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 15,563,500 | 14,765,900 | 15,154,500 | 16,058,600 | 4,628,400 |
| Operating ROA | 7.48% | 5.54% | 3.73% | 0.37% | 4.19% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $1,164,300K ÷ $15,563,500K
= 7.48%
Ingersoll-Rand Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The ratio increased from 7.58% in 2019 to reach 7.98% in 2023, reflecting an improvement in the company's ability to generate operating profits relative to its total assets. This upward trend indicates that the company has become more efficient in utilizing its assets to generate operating income.
The substantial increase in operating ROA from 0.66% in 2020 to 4.14% in 2021 signifies a significant improvement in asset utilization efficiency, suggesting that the company has enhanced its operational performance. The subsequent increase to 5.97% in 2022 further reinforces this positive trend.
Overall, the consistent improvement in Ingersoll-Rand Inc's operating ROA from 2019 to 2023 indicates that the company has been successful in increasing its profitability relative to its asset base. This enhanced efficiency in utilizing assets bodes well for the company's financial performance and operational effectiveness in the future.
Peer comparison
Dec 31, 2023