Ingersoll Rand Inc (IR)

Financial leverage ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total assets US$ in thousands 18,009,800 15,563,500 14,765,900 15,154,500 16,058,600
Total stockholders’ equity US$ in thousands 10,179,000 9,783,800 9,195,800 9,001,500 9,119,700
Financial leverage ratio 1.77 1.59 1.61 1.68 1.76

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $18,009,800K ÷ $10,179,000K
= 1.77

The financial leverage ratio of Ingersoll Rand Inc has exhibited a declining trend from 1.76 in December 2020 to 1.59 in December 2023, indicating a reduction in the company's reliance on debt to finance its operations and assets. This decreasing trend suggests that the company may be managing its debt levels more effectively or increasing its equity base over the years. However, the ratio increased slightly to 1.77 by December 2024, potentially indicating a slight uptick in leverage compared to the previous year. Overall, the financial leverage ratio demonstrates a fluctuating pattern, but the company's leverage position appears relatively stable within a reasonable range over the specified period.