Ingersoll Rand Inc (IR)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 15,563,500 | 15,154,000 | 15,028,600 | 14,995,000 | 14,765,900 | 14,225,600 | 14,221,400 | 15,104,800 | 15,154,500 | 14,922,800 | 16,176,700 | 15,861,900 | 16,058,600 | 15,610,500 | 15,433,300 | 15,358,300 | 4,628,400 | 4,553,800 | 4,594,300 | 4,566,800 |
| Total stockholders’ equity | US$ in thousands | 9,783,800 | 9,554,000 | 9,414,800 | 9,317,300 | 9,195,800 | 8,750,900 | 8,776,900 | 8,992,200 | 9,001,500 | 8,653,600 | 9,277,900 | 8,956,700 | 9,119,700 | 8,771,700 | 8,574,900 | 8,686,200 | 1,869,900 | 1,790,500 | 1,785,300 | 1,737,700 |
| Financial leverage ratio | 1.59 | 1.59 | 1.60 | 1.61 | 1.61 | 1.63 | 1.62 | 1.68 | 1.68 | 1.72 | 1.74 | 1.77 | 1.76 | 1.78 | 1.80 | 1.77 | 2.48 | 2.54 | 2.57 | 2.63 |
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 has been relatively stable over the past eight quarters, ranging between 1.59 and 1.68. The ratio indicates that the company has been maintaining a moderate level of financial leverage during this period.
A financial leverage ratio above 1 implies that the company relies on debt to finance its operations and growth. Ingersoll-Rand's ratios in the range of 1.59 to 1.68 suggest a moderate reliance on debt compared to equity in its capital structure.
The slight fluctuations in the ratio over the quarters may be attributed to changes in the company's debt levels and equity financing. It is important for investors and stakeholders to monitor the trend of the financial leverage ratio to assess the company's ability to meet its debt obligations and leverage risk effectively.
Overall, the stability of the financial leverage ratio within a relatively narrow range indicates a consistent approach to capital structure management by Ingersoll-Rand Inc.
Peer comparison
Dec 31, 2023