Ingersoll Rand Inc (IR)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 778,700 | 766,300 | 703,100 | 662,100 | 604,700 | 680,300 | 661,200 | 756,600 | 562,500 | 421,100 | 324,600 | -86,900 | -33,300 | -159,200 | -147,400 | 75,100 | 159,000 | 227,800 | 258,700 | 274,100 |
| Total assets | US$ in thousands | 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 | 4,628,400 | 4,553,800 | 4,594,300 | 4,566,800 |
| 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% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $778,700K ÷ $15,563,500K
= 5.00%
Ingersoll-Rand Inc's return on assets (ROA) has shown some variability in recent quarters. The ROA ranged from a low of 4.10% in Q4 2022 to a high of 5.06% in Q3 2023. Overall, the average ROA for the eight quarters provided is 4.73%. This indicates that, on average, the company generates $0.0473 in profit for each dollar of assets it holds.
A consistent or increasing ROA over time generally signals efficiency in asset utilization and profitability. Ingersoll-Rand's ROA has mostly been above 4%, suggesting that the company is effectively using its assets to generate profits. It's noteworthy that the ROA in Q3 2023 saw an uptick to 5.06%, indicating a potential improvement in profitability and efficiency compared to previous quarters.
Investors and stakeholders should continue monitoring Ingersoll-Rand's ROA in the upcoming quarters to assess if the upward trend in profitability and asset utilization is sustainable.
Peer comparison
Dec 31, 2023