Ingersoll Rand Inc (IR)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.77 | 1.77 | 1.79 | 1.58 | 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 |
Ingersoll Rand Inc's solvency ratios indicate a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been recorded as 0.00% for each reporting period from March 31, 2020, to December 31, 2024. This suggests that the company's operations are primarily financed through equity rather than debt.
The Financial leverage ratio, which represents the level of debt in relation to equity, has shown a declining trend over the years, decreasing from 1.77 in March 31, 2020, to 1.77 in December 31, 2021, and further to 1.58 in March 31, 2024. This indicates that the company is becoming less reliant on debt to finance its operations, which could potentially reduce financial risk and improve overall solvency.
Overall, the solvency ratios of Ingersoll Rand Inc demonstrate a stable and healthy financial position, characterized by a conservative approach to leverage and a strong equity base.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.10 | 6.67 | 7.36 | 7.90 | 7.50 | 7.38 | 7.30 | 7.72 | 8.31 | 9.36 | 9.21 | 10.05 | 7.17 | 5.68 | 4.51 | 1.02 | 0.80 | -0.41 | -0.41 | 1.10 |
In analyzing Ingersoll Rand Inc's interest coverage ratio over the past few years, we observed a significant fluctuation in the company's ability to cover its interest payments. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt.
Starting from March 31, 2020, the interest coverage ratio was at a low level of 1.10, indicating that the company's earnings just covered its interest payments. However, the ratio dropped into negative territory in June and September 2020, reflecting a concerning situation where the company's earnings were insufficient to cover its interest expenses.
From December 2020 onwards, there was some improvement in the interest coverage ratio, with values above 1. This improvement continued through 2021 and 2022, with the ratio progressively increasing to reach a peak of 10.05 in March 2022, suggesting a strong ability to meet interest obligations comfortably.
However, from June 2022 to September 2024, there was a downward trend in the interest coverage ratio, indicating a slight decline in the company's ability to cover interest expenses. Despite this decline, the ratios remained above 5, which generally indicates a healthy level of interest coverage.
Overall, the company's interest coverage ratio exhibited variability but generally improved over the period under review, reflecting a mix of strong and challenging financial performance periods. It would be advisable for stakeholders to continue monitoring this ratio to ensure that Ingersoll Rand Inc can consistently meet its interest payment obligations.