Ingersoll Rand Inc (IR)

Operating return on assets (Operating ROA)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Operating income (ttm) US$ in thousands 1,300,100 1,254,500 1,216,600 1,217,200 1,164,300 1,104,000 975,600 900,600 817,300 684,800 658,700 601,400 565,700 540,200 445,300 260,200 62,800 -85,700 -81,800 37,800
Total assets US$ in thousands 18,009,800 18,206,200 17,838,500 15,529,000 15,563,500 15,154,000 15,028,600 14,995,000 14,765,900 14,225,600 14,221,400 15,104,800 15,154,500 14,922,800 16,176,700 15,861,900 16,058,600 15,610,500 15,433,300 15,358,300
Operating ROA 7.22% 6.89% 6.82% 7.84% 7.48% 7.29% 6.49% 6.01% 5.54% 4.81% 4.63% 3.98% 3.73% 3.62% 2.75% 1.64% 0.39% -0.55% -0.53% 0.25%

December 31, 2024 calculation

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

Ingersoll Rand Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past few years based on the provided data. The company's operating ROA was negative in the second and third quarters of 2020, indicating that its operating income generated from assets was insufficient to cover the asset base during that period.

However, there was a turnaround in the fourth quarter of 2020, with a positive operating ROA of 0.39%. The performance improved significantly in the following quarters, with a notable increase in operating ROA in each subsequent period up to the second quarter of 2024, reaching a peak of 7.84%.

The consistently increasing trend in operating ROA from the fourth quarter of 2020 to the second quarter of 2024 suggests that Ingersoll Rand Inc has been effectively utilizing its assets to generate operating income. This improvement indicates the company's operational efficiency and ability to generate higher returns from its asset base over time.

It is essential for stakeholders and investors to monitor the company's operating ROA trend to assess its operational performance and efficiency in utilizing its assets effectively.