Ingersoll Rand Inc (IR)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 10,179,000 9,783,800 9,195,800 9,001,500 9,119,700
ROE 8.24% 7.96% 6.58% 6.25% -0.37%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $838,600K ÷ $10,179,000K
= 8.24%

Ingersoll Rand Inc's return on equity (ROE) has shown a positive trend over the past five years. From a negative ROE of -0.37% in December 31, 2020, the company gradually improved its performance, reaching ROE figures of 6.25% in December 31, 2021, 6.58% in December 31, 2022, 7.96% in December 31, 2023, and 8.24% in December 31, 2024.

This upward trajectory indicates that Ingersoll Rand Inc has been effectively utilizing its shareholders' equity to generate profits. The consistent growth in ROE suggests that the company is becoming more efficient in generating earnings from the equity invested by its shareholders. Overall, the increasing trend in ROE is a positive sign of the company's financial health and operational performance.