Ingersoll Rand Inc (IR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 41.92% | 41.26% | 40.14% | 39.68% | 39.31% | 38.18% | 38.39% | 38.48% | 38.59% | 39.22% | 39.20% | 36.86% | 34.96% | 34.79% | 33.63% | 36.44% | 38.58% | 37.34% | 37.58% | 37.58% |
| Operating profit margin | 16.93% | 16.53% | 15.11% | 14.51% | 13.81% | 11.99% | 11.93% | 11.22% | 10.98% | 10.91% | 9.40% | 5.80% | 1.55% | -2.84% | -3.28% | 1.80% | 9.62% | 14.14% | 15.34% | 16.11% |
| 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% |
| Net profit margin | 11.32% | 11.47% | 10.89% | 10.66% | 10.22% | 11.91% | 11.98% | 14.12% | 10.92% | 8.50% | 6.85% | -1.94% | -0.82% | -5.28% | -5.90% | 3.57% | 7.88% | 8.90% | 9.76% | 10.19% |
Ingersoll-Rand Inc has demonstrated a consistent improvement in profitability ratios over the past quarters. The gross profit margin has shown a positive trend, steadily increasing from 39.31% in Q4 2022 to 41.92% in Q4 2023, indicating effective cost control and pricing strategies.
The operating profit margin has also shown an upward trajectory, climbing from 14.91% in Q4 2022 to 18.06% in Q4 2023. This suggests that the company has been efficient in managing operating expenses and generating operating income relative to sales.
Similarly, the pretax margin has increased steadily from 12.56% in Q4 2022 to 14.91% in Q4 2023, reflecting a sound financial management approach in achieving higher profitability before taxes.
The net profit margin, while fluctuating in the recent quarters, has shown an overall positive trend with an increase from 10.22% in Q4 2022 to 11.32% in Q4 2023. This indicates that Ingersoll-Rand Inc has been successful in controlling its costs and expenses to generate stronger net earnings relative to revenue.
Overall, the profitability ratios of Ingersoll-Rand Inc demonstrate improving operational efficiency and financial performance, reflecting positively on the company's profitability and potential long-term sustainability.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 4.19% | 7.95% | 8.85% | 9.49% |
| Return on assets (ROA) | 5.00% | 5.06% | 4.68% | 4.42% | 4.10% | 4.78% | 4.65% | 5.01% | 3.71% | 2.82% | 2.01% | -0.55% | -0.21% | -1.02% | -0.96% | 0.49% | 3.44% | 5.00% | 5.63% | 6.00% |
| Return on total capital | 12.01% | 11.87% | 10.92% | 10.20% | 9.32% | 9.43% | 8.83% | 9.34% | 6.98% | 6.09% | 4.81% | 1.22% | 0.98% | -0.50% | -0.49% | 1.18% | 13.93% | 20.39% | 23.01% | 25.25% |
| Return on equity (ROE) | 7.96% | 8.02% | 7.47% | 7.11% | 6.58% | 7.77% | 7.53% | 8.41% | 6.25% | 4.87% | 3.50% | -0.97% | -0.37% | -1.81% | -1.72% | 0.86% | 8.50% | 12.72% | 14.49% | 15.77% |
Ingersoll-Rand Inc's profitability ratios have shown a generally positive trend over the quarters in terms of return on assets (ROA), operating return on assets (Operating ROA), return on total capital, and return on equity (ROE).
1. Operating return on assets (Operating ROA) has improved consistently from 4.31% in Q1 2022 to 7.98% in Q4 2023. This indicates that the company has been effectively generating operating profit relative to its total assets.
2. Return on assets (ROA) has fluctuated slightly but has remained relatively stable, ranging from 4.10% to 5.06% over the quarters. This shows that Ingersoll-Rand has been moderately effective in generating profits from its assets.
3. Return on total capital has shown an upward trend, increasing from 5.21% in Q1 2022 to 9.93% in Q4 2023. This demonstrates the company's ability to generate returns for both equity and debt holders.
4. Return on equity (ROE) has also increased gradually from 6.58% in Q1 2022 to 7.96% in Q4 2023, indicating that the company has been successful in generating profits from shareholders' equity.
Overall, Ingersoll-Rand Inc's profitability ratios reflect a positive performance and efficiency in utilizing its assets and capital to generate returns for its stakeholders.