Ingersoll Rand Inc (IR)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 18,009,800 15,563,500 14,765,900 15,154,500 16,058,600
Operating ROA 7.22% 7.48% 5.54% 3.73% 0.37%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $1,300,100K ÷ $18,009,800K
= 7.22%

Ingersoll Rand Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, increasing steadily from 0.37% as of December 31, 2020, to 7.22% as of December 31, 2024. This improvement indicates the company's ability to generate more operating income relative to its total assets, reflecting efficient asset utilization and operational performance.

The significant growth in operating ROA from 2020 to 2024 suggests that Ingersoll Rand has been successful in enhancing its operational efficiency and profitability. The rising trend is a positive indicator for investors, as it demonstrates the company's capacity to generate higher returns from its asset base over time.

However, it is essential to assess the sustainability of this increasing trend and consider additional factors such as industry benchmarks, economic conditions, and company-specific strategies that may influence future operating ROA performance. Overall, Ingersoll Rand's improving operating ROA signifies effective management of assets to drive earnings growth and create value for shareholders.