Ingersoll Rand Inc (IR)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,300,300 1,259,800 1,211,700 1,220,700 1,175,400 1,133,900 1,027,700 950,500 857,500 825,500 774,700 840,200 628,400 526,700 446,600 109,100 89,100 -44,200 -41,800 102,200
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
Total stockholders’ equity US$ in thousands 10,179,000 10,267,600 9,958,200 9,855,300 9,783,800 9,554,000 9,414,800 9,317,300 9,195,800 8,750,900 8,776,900 8,992,200 9,001,500 8,653,600 9,277,900 8,956,700 9,119,700 8,771,700 8,574,900 8,686,200
Return on total capital 12.77% 12.27% 12.17% 12.39% 12.01% 11.87% 10.92% 10.20% 9.32% 9.43% 8.83% 9.34% 6.98% 6.09% 4.81% 1.22% 0.98% -0.50% -0.49% 1.18%

December 31, 2024 calculation

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

Ingersoll Rand Inc's return on total capital has shown a varying trend from March 31, 2020, to December 31, 2024. The ratio started from 1.18% in March 2020, fluctuating between negative values and positive values in the subsequent quarters. However, there was a noticeable improvement in the return on total capital from March 2021 onwards. The ratio increased steadily, reaching 12.77% by December 31, 2024.

This upward trajectory indicates that the company has become more efficient in generating returns from its capital over the analyzed period. A higher return on total capital suggests that Ingersoll Rand Inc is utilizing its capital resources effectively to generate profits. This positive trend may indicate improved operational performance, better management of assets, or enhanced strategic decision-making by the company. Investors and stakeholders may view this trend positively as it reflects the company's ability to generate higher returns relative to the capital employed.