Ingersoll Rand Inc (IR)
Return on assets (ROA)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | 838,600 | 778,700 | 604,700 | 562,500 | -33,300 |
Total assets | US$ in thousands | 18,009,800 | 15,563,500 | 14,765,900 | 15,154,500 | 16,058,600 |
ROA | 4.66% | 5.00% | 4.10% | 3.71% | -0.21% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $838,600K ÷ $18,009,800K
= 4.66%
Based on the provided data, Ingersoll Rand Inc's return on assets (ROA) has shown a significant improvement over the years.
In December 31, 2020, the company had a negative ROA of -0.21%, indicating that it was not effectively utilizing its assets to generate profit. However, by the end of December 31, 2021, the ROA improved to 3.71%, signaling a turnaround in asset utilization efficiency.
This positive trend continued in the following years, with the ROA reaching 4.10% by December 31, 2022, and further increasing to 5.00% by December 31, 2023. These improvements suggest that the company has been able to generate more profit relative to its asset base.
While the ROA slightly declined to 4.66% by December 31, 2024, it still remained at a relatively healthy level compared to the starting point in 2020. Overall, the increasing trend in ROA demonstrates an enhancement in the company's ability to generate profits from its assets, indicating improved efficiency and management of its asset base.
Peer comparison
Dec 31, 2024