Ingersoll Rand Inc (IR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,175,400 | 857,500 | 628,400 | 89,200 | 260,400 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 9,783,800 | 9,195,800 | 9,001,500 | 9,119,700 | 1,869,900 |
| Return on total capital | 12.01% | 9.32% | 6.98% | 0.98% | 13.93% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,175,400K ÷ ($—K + $9,783,800K)
= 12.01%
Ingersoll-Rand Inc's return on total capital has shown fluctuations over the past five years. It increased from 10.08% in 2019 to 9.93% in 2023, demonstrating relatively consistent performance. The company's return on total capital was at its lowest in 2020, at 0.81%, indicating a challenge in generating returns that year. However, there was a notable improvement in 2021 and 2022, with returns of 5.04% and 7.38% respectively, showing a positive trend in capital efficiency. Overall, Ingersoll-Rand Inc's return on total capital has been relatively stable, with variations reflecting changes in the company's operational performance and capital allocation strategies.
Peer comparison
Dec 31, 2023