Ingersoll-Rand plc designs, manufactures, sells, and services industrial and commercial products. It operates through Climate and Industrial segments. The Climate segment offers building management, bus and rail HVAC, control, container and cryogenic refrigeration, diesel-powered refrigeration, ductless, geothermal, package heating and cooling, rail and self-powered truck refrigeration, temporary heating and cooling, trailer refrigeration, unitary, and vehicle-powered truck refrigeration systems. This segment also provides aftermarket and OEM parts and supplies, air conditioners, air exchangers and handlers, airside and terminal devices, auxiliary power units, chillers, coils and condensers, gensets, furnaces, heat pumps, home automation, humidifiers, hybrid and non-diesel transport refrigeration solutions, indoor air quality, industrial refrigeration, motor replacements, performance contracting, refrigerant reclamation, thermostats/controls, transport heater products, and water source heat pumps. In addition, this segment offers energy and facility management, installation contracting, rental, and repair and maintenance services; and service agreements. The Industrial segment provides air treatment and separation, engine starting, ergonomic material handling, fluid handling, precision fastening, and mobile golf information systems; and compressors, airends, blowers, dryers, filters, golf vehicles, hoists, fluid power components, power tools, pumps, rough terrain vehicles, utility and low-speed vehicles, and winches, as well as aftermarket controls, parts, accessories, and consumables. The company markets and sells its products under the American Standard, ARO, Club Car, Nexia, Thermo King, and Trane brand names through sales offices, distributors, and dealers in the United States; and through subsidiary sales and service companies with a supporting chain of distributors worldwide. Ingersoll-Rand plc was founded in 1872 and is headquartered in Swords, Ireland.
Business Analysis of Ingersoll-Rand
The Construction and Building Products Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Ingersoll-Rand compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Ingersoll-Rand to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of Ingersoll-Rand with an interactive chart.
- Revenue Growth: Ingersoll-Rand reported a revenue growth of 1.6% year-on-year during 2016. Heavy Construction Industry grew at -5.7% in the same period
- COGS share of Revenues: As a percentage of revenue, Ingersoll-Rand spent 69.1% of its total revenues on COGS. Heavy Construction industry average (COGS share of revenue) in the same period was 81.6%
- R&D share of Revenues: Ingersoll-Rand R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, Ingersoll-Rand spent 19.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Heavy Construction industry average SG&A spending in the same period was 9.5%
- Inventory share of Revenues: As a percentage of revenue, Ingersoll-Rand spent 10.3% of its total revenues on Inventories. Heavy Construction industry average Inventory spending in the same period was 8.5%
- Accounts Payable share of Revenues: As a percentage of revenue, Ingersoll-Rand invested 9.9% of its total revenues on Accounts Payable (A/P) Heavy Construction industry average Accounts Payable investment in the same period was 12.5%
- Accounts Receivable share of Revenues: As a percentage of revenue, Ingersoll-Rand invested 16.5% of its total revenues on Accounts Receivable (A/R). Heavy Construction industry average Accounts Receivable investment in the same period was 43.5%
- PP&E share of Revenues: As a percentage of revenue, Ingersoll-Rand invested 11.2% of its total revenues on Property, Plants, and Equipments (PP&E). Heavy Construction industry average PPE investment in the same period was 19.0%
- Intangibles share of Revenues: As a percentage of revenue, Ingersoll-Rand invested 69.9% of its total revenues on Intangibles. Heavy Construction industry average Intangibles investment in the same period was 22.1%
- Net Margins: Ingersoll-Rand Net Margins in the year 2016 were 10.9%. Heavy Construction industry average Net Margins in the same period were 2.1%
Sector and Industry Association of Ingersoll-Rand
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
Ingersoll-Rand is associated with Industrials Sector Group, Construction and Building Products Sector, and Heavy Construction Industry.
Construction and Building Products sector is comprised of the following industries: Building Materials & Fixtures; Heavy Construction. The definitions for each of the industries is as follows:
- Building Materials & Fixtures industry includes producers of materials used in the construction and refurbishment of buildings and structures, including cement and other aggregates, wooden beams and frames, paint, glass, roofing and flooring materials other than carpets. Building Materials & Fixtures companies also offer bathroom and kitchen fixtures, plumbing supplies and central air-conditioning and heating equipment.
- Heavy Construction industry includes companies engaged in the construction of commercial buildings, infrastructure such as roads and bridges, residential apartment buildings, and providers of services to construction companies, such as architects, masons, plumbers and electrical contractors. Heavy Construction companies also offer construction equipment.
Industry Ranking of Ingersoll-Rand
With $13.5 billion revenues, Ingersoll-Rand ranked number 5 of all the companies in the US Heavy Construction industry. There were a total of 40 public companies in the US Heavy Construction industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Heavy Construction industry by revenues during 2016 were:
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
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- Get free data, charts, and analysis of Ingersoll-Randand its peers on select key performance indicators by clicking the reports provided below