Ingersoll Rand Inc (IR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,563,500 | 14,765,900 | 15,154,500 | 16,058,600 | 4,628,400 |
| Total stockholders’ equity | US$ in thousands | 9,783,800 | 9,195,800 | 9,001,500 | 9,119,700 | 1,869,900 |
| Financial leverage ratio | 1.59 | 1.61 | 1.68 | 1.76 | 2.48 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,563,500K ÷ $9,783,800K
= 1.59
The financial leverage ratio of Ingersoll-Rand Inc, a measure of the company's use of debt to finance its operations and assets, has exhibited a decreasing trend over the last five years. The ratio decreased from 2.48 in 2019 to 1.59 in 2023. This downward trend indicates that the company has been reducing its reliance on debt in its capital structure.
A lower financial leverage ratio suggests that Ingersoll-Rand Inc has a lower level of debt compared to its equity, which can indicate a stronger financial position and lower financial risk. It may also imply that the company has improved its ability to generate sufficient internal funds to support its operations and investments without resorting to excessive borrowing.
Overall, the decreasing trend in the financial leverage ratio of Ingersoll-Rand Inc over the past five years suggests a positive development in the company's capital structure and financial health.
Peer comparison
Dec 31, 2023