Ingersoll Rand Inc (IR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 778,700 | 604,700 | 562,500 | -33,300 | 159,100 |
| Total assets | US$ in thousands | 15,563,500 | 14,765,900 | 15,154,500 | 16,058,600 | 4,628,400 |
| ROA | 5.00% | 4.10% | 3.71% | -0.21% | 3.44% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $778,700K ÷ $15,563,500K
= 5.00%
Ingersoll-Rand Inc's return on assets (ROA) has shown a consistent improvement over the past five years, with the ROA increasing from -0.21% in 2020 to 5.00% in 2023. This positive trend indicates that the company is becoming more effective in generating profits relative to its total assets. The significant increase in 2023 suggests that the company has been able to improve its asset utilization and efficiency in generating earnings. This could be attributed to better operational performance, effective asset management, or successful cost control measures. Investors and stakeholders may view this improvement favorably as it reflects the company's ability to generate returns on its assets. It will be important to monitor future ROA trends to assess the company's ongoing financial performance and efficiency.
Peer comparison
Dec 31, 2023