Ingersoll Rand Inc (IR)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $9,783,800K
= 0.00
Ingersoll-Rand Inc's debt-to-equity ratio has exhibited a declining trend over the past five years, decreasing from 0.86 in 2019 to 0.28 in 2023. This indicates a significant improvement in the company's financial leverage and solvency position. A lower debt-to-equity ratio suggests that the company is relying less on debt financing and has a stronger equity base to support its operations and growth.
The decreasing trend in the debt-to-equity ratio can be seen as a positive signal to stakeholders, as it implies reduced financial risk and better stability for the company. It also indicates that Ingersoll-Rand Inc has been effectively managing its debt levels relative to its equity over the years, possibly through debt repayment or increased equity investments.
The current debt-to-equity ratio of 0.28 in 2023 reflects a conservative capital structure, with a lower proportion of debt compared to equity. This can enhance the company's ability to access additional financing at favorable terms and withstand economic challenges or fluctuations in the future. Overall, the downward trend in the debt-to-equity ratio for Ingersoll-Rand Inc signals a stronger financial position and prudent debt management strategies.
Peer comparison
Dec 31, 2023