Ingersoll Rand Inc (IR)
Pretax margin
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 1,018,700 | 980,200 | 887,000 | 827,400 | 754,300 | 737,300 | 690,600 | 756,600 | 540,700 | 434,000 | 347,600 | 2,000 | -22,000 | -151,300 | -143,300 | 9,100 | 172,000 | 274,000 | 318,500 | 342,800 |
| Revenue (ttm) | US$ in thousands | 6,876,100 | 6,678,400 | 6,455,200 | 6,208,600 | 5,916,300 | 5,711,400 | 5,520,700 | 5,359,900 | 5,152,400 | 4,952,100 | 4,739,600 | 4,485,900 | 4,059,900 | 3,012,800 | 2,497,000 | 2,100,700 | 2,017,500 | 2,558,800 | 2,651,400 | 2,690,500 |
| Pretax margin | 14.82% | 14.68% | 13.74% | 13.33% | 12.75% | 12.91% | 12.51% | 14.12% | 10.49% | 8.76% | 7.33% | 0.04% | -0.54% | -5.02% | -5.74% | 0.43% | 8.53% | 10.71% | 12.01% | 12.74% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,018,700K ÷ $6,876,100K
= 14.82%
Ingersoll-Rand Inc's pretax margin has shown a generally positive trend over the past eight quarters. The pretax margin has been steadily increasing, with the most recent quarter, Q4 2023, reaching 14.91%, the highest level observed in the period analyzed. This indicates that the company has been effectively managing its operating expenses relative to its revenue.
The improvement in pretax margin suggests enhanced operational efficiency and cost management within the company. It is a positive sign for investors, as a higher pretax margin reflects that a larger proportion of revenue is translating into operating profits before accounting for taxes and other financial obligations.
The consistent growth in pretax margin over multiple quarters highlights Ingersoll-Rand Inc's ability to generate profits from its core business activities. It indicates that the company is effectively controlling costs while maintaining or increasing revenue levels. This trend could indicate a strong competitive position and operational excellence within the company.
Overall, the upward trajectory of Ingersoll-Rand Inc's pretax margin demonstrates a positive financial performance and suggests that the company is on a path of sustainable growth and profitability.
Peer comparison
Dec 31, 2023