Ingersoll Rand Inc (IR)

Return on total capital

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before interest and tax (EBIT) US$ in thousands 1,300,100 1,175,400 857,500 628,400 89,200
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 10,179,000 9,783,800 9,195,800 9,001,500 9,119,700
Return on total capital 12.77% 12.01% 9.32% 6.98% 0.98%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,300,100K ÷ ($—K + $10,179,000K)
= 12.77%

Ingersoll Rand Inc's return on total capital has shown a positive trend over the years as follows:

- December 31, 2020: 0.98%
- December 31, 2021: 6.98%
- December 31, 2022: 9.32%
- December 31, 2023: 12.01%
- December 31, 2024: 12.77%

The return on total capital has steadily increased from 2020 to 2024, indicating that the company is making more efficient use of its capital to generate profits. This trend suggests that Ingersoll Rand Inc is improving its overall operational performance and financial health. Investors may view this positive trajectory as a sign of the company's effective management and potential for continued growth.