Ingersoll Rand Inc (IR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $9,783,800K)
= 0.00
The debt-to-capital ratio of Ingersoll-Rand Inc has shown a decreasing trend over the past five years, indicating a reduction in the company's reliance on debt to finance its operations compared to its total capital structure.
In 2019, the ratio was at its highest point of 0.46, suggesting that almost half of the company's capital was funded by debt. However, there has been a consistent decline in the ratio since then, reaching 0.22 at the end of 2023.
The decreasing trend in the debt-to-capital ratio indicates that Ingersoll-Rand Inc has been successfully managing its debt levels relative to its total capital, which can be a positive sign for investors and creditors. This trend may indicate improved financial stability and lower financial risk for the company.
Overall, the decreasing debt-to-capital ratio of Ingersoll-Rand Inc over the past five years reflects a prudent approach to capital structure management and a potential strengthening of the company's financial position.
Peer comparison
Dec 31, 2023