Ingersoll Rand Inc (IR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.77 | 1.59 | 1.61 | 1.68 | 1.76 |
Based on the provided data for Ingersoll Rand Inc, the solvency ratios paint a picture of a company with very low levels of debt compared to its assets, capital, and equity over the years.
The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all show a consistent ratio of 0.00 from 2020 to 2024. This indicates that the company has not been relying heavily on debt to finance its operations, as its total debt is negligible compared to its assets, capital, and equity.
The Financial leverage ratio has fluctuated slightly over the years, starting at 1.76 in 2020, decreasing to 1.59 in 2023, and then increasing slightly to 1.77 in 2024. Despite these fluctuations, the ratio has generally remained within a stable range, suggesting that the company has a conservative capital structure and is not highly leveraged.
Overall, the consistent low debt ratios and relatively stable financial leverage ratio indicate that Ingersoll Rand Inc has maintained a strong financial position with minimal reliance on debt to support its operations, which may improve its ability to weather economic downturns and invest in growth opportunities.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.10 | 7.50 | 8.31 | 7.17 | 0.80 |
The interest coverage ratio measures a company's ability to pay interest expenses on its outstanding debt. In the case of Ingersoll Rand Inc, the interest coverage has shown variability over the past five years.
On December 31, 2020, the interest coverage ratio was 0.80, indicating that the company's operating income was only sufficient to cover 80% of its interest expenses. This suggests a potential risk of financial distress as the company may struggle to meet its interest obligations.
However, in the following years, Ingersoll Rand Inc's interest coverage improved significantly. By December 31, 2021, the ratio increased to 7.17, demonstrating a much stronger ability to cover interest payments. This improvement continued in 2022, with an interest coverage ratio of 8.31, indicating a better financial position for the company.
Despite a slight decrease in the interest coverage ratio to 7.50 by December 31, 2023, the company still maintained a healthy ability to meet its interest obligations. However, the ratio declined further to 6.10 by December 31, 2024, suggesting a slight deterioration in the company's ability to cover interest expenses.
Overall, Ingersoll Rand Inc's interest coverage ratio has shown both improvement and fluctuation over the past five years. It is important for investors and stakeholders to monitor this ratio to assess the company's financial health and its ability to manage its debt obligations effectively.