Ingersoll Rand Inc (IR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 15,563,500 | 14,765,900 | 15,154,500 | 16,058,600 | 4,628,400 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $15,563,500K
= 0.00
The debt-to-assets ratio of Ingersoll-Rand Inc has shown a declining trend over the five-year period from 2019 to 2023, indicating a decreasing reliance on debt to finance the company's assets. In 2019, the ratio was relatively high at 0.35, signifying that 35% of the company's assets were financed by debt. However, by 2023, the ratio had decreased to 0.17, suggesting that only 17% of the company's assets were funded by debt.
This decreasing trend in the debt-to-assets ratio indicates that Ingersoll-Rand Inc has been actively reducing its debt levels relative to its asset base. Lower debt levels can be viewed positively as it reduces the company's financial risk and potentially indicates strong financial health and stability. The company may have been utilizing other financing sources or generating sufficient internal cash flows to fund its operations and investments without relying heavily on debt.
Overall, the declining debt-to-assets ratio of Ingersoll-Rand Inc reflects a prudent approach to capital structure management and a potential enhancement of the company's financial flexibility and resilience.
Peer comparison
Dec 31, 2023