Ingersoll Rand Inc (IR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 9,783,800 | 9,195,800 | 9,001,500 | 9,119,700 | 1,869,900 |
| ROE | 7.96% | 6.58% | 6.25% | -0.37% | 8.51% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $778,700K ÷ $9,783,800K
= 7.96%
Ingersoll-Rand Inc's return on equity (ROE) has varied over the past five years. In 2023, the ROE stood at 7.96%, a slight improvement from the previous year's 6.58%. The company's ROE in 2021 was 6.25%, showing a relatively stable performance compared to 2022. Notably, in 2020, Ingersoll-Rand Inc experienced a negative ROE of -0.37%, indicating a net loss or inefficiency in generating profits relative to shareholders' equity. However, the company rebounded strongly in 2019 with an ROE of 8.51%.
Overall, while Ingersoll-Rand Inc's ROE has shown fluctuations, the company's ability to generate returns on shareholders' equity has generally improved in recent years, with the exception of the negative ROE in 2020. It will be crucial for the company to maintain and build upon this positive trend to enhance shareholder value in the future.
Peer comparison
Dec 31, 2023