Ingersoll Rand Inc (IR)

Debt-to-equity ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands — — — — —
Total stockholders’ equity US$ in thousands 10,179,000 9,783,800 9,195,800 9,001,500 9,119,700
Debt-to-equity ratio 0.00 0.00 0.00 0.00 0.00

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $10,179,000K
= 0.00

Based on the provided data, Ingersoll Rand Inc has consistently maintained a debt-to-equity ratio of 0.00 from December 31, 2020, to December 31, 2024.

A debt-to-equity ratio of 0.00 indicates that the company has no debt or a negligible amount of debt in relation to its equity. This suggests that the company is primarily financed by equity, which could signify a lower financial risk and a strong financial position.

Having a low or zero debt-to-equity ratio can be advantageous as it implies that the company may have lower interest expenses and may be less vulnerable to financial distress. However, it's essential to consider the context and industry norms when interpreting this ratio, as excessively low debt levels could potentially indicate underutilization of leverage and limited growth opportunities. Overall, a consistently low debt-to-equity ratio for Ingersoll Rand Inc over the years indicates a conservative capital structure strategy, emphasizing stability and financial strength.