Ingersoll Rand Inc (IR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.59 | 1.61 | 1.68 | 1.76 | 2.48 |
Ingersoll-Rand Inc's solvency ratios show a consistently improving trend over the past five years. The debt-to-assets ratio has decreased from 0.35 in 2019 to 0.17 in 2023, indicating that the company's reliance on debt to finance its assets has declined. Similarly, the debt-to-capital ratio has also shown a downward trend from 0.46 in 2019 to 0.22 in 2023, suggesting a more favorable capital structure.
The debt-to-equity ratio reflects a decreasing trend as well, decreasing from 0.86 in 2019 to 0.28 in 2023. This indicates that the company is relying less on debt and more on equity to fund its operations.
The financial leverage ratio has also improved steadily, decreasing from 2.48 in 2019 to 1.59 in 2023, indicating that the company's reliance on debt financing has decreased, leading to a more stable financial position.
Overall, Ingersoll-Rand Inc's solvency ratios have shown a positive trend over the years, reflecting improved financial health and a more sustainable capital structure.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 7.50 | 8.31 | 7.17 | 0.80 | 2.95 |
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt, with higher ratios indicating a stronger ability to do so. Ingersoll-Rand Inc's interest coverage has shown varying levels over the past five years.
The trend indicates an improving financial position from 2019 to 2022, with interest coverage ratios increasing steadily from 3.95 to 8.55, which suggests the company's earnings before interest and taxes (EBIT) have been able to cover its interest expenses more comfortably.
However, there was a noticeable decline in the interest coverage ratio in 2023 to 7.93, which, although still at a relatively healthy level, may indicate a slight decrease in the company's ability to cover its interest obligations. It is essential for investors and analysts to monitor this ratio closely in the future to ensure Ingersoll-Rand Inc's continued ability to meet its debt obligations.