IR (Ingersoll Rand) Interest Coverage: 4.92 (As of Mar. 2026) — Near Median


IR Ingersoll Rand Inc IR
86 GF Score
Price $78.32
GF Value $91.24
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Ingersoll Rand Interest Coverage?

Ingersoll Rand IR +2.19% 86 Interest Coverage is 4.92 as of Mar. 2026, which is 6% below its 10-year median of 5.25. GuruFocus rates IR with a GF Score™ of 86/100 and a GF Value™ of $91.24 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,330 Industrial Products companies, Ingersoll Rand ranks worse than 70.17% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ingersoll Rand's Operating Income for the three months ended in Mar. 2026 was $314 Mil. Ingersoll Rand's Interest Expense for the three months ended in Mar. 2026 was $-64 Mil. Ingersoll Rand's interest coverage for the quarter that ended in Mar. 2026 was 4.92. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ingersoll Rand's Interest Coverage or its related term are showing as below:

IR' s Interest Coverage Range Over the Past 10 Years
Min: 0.92   Med: 5.25   Max: 8.52
Current: 5.85


IR's Interest Coverage is ranked worse than
70.17% of 2330 companies
in the Industrial Products industry
Industry Median: 14.835 vs IR: 5.85

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Ingersoll Rand  (NYSE:IR) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Ingersoll Rand Interest Coverage Related Terms


Ingersoll Rand Interest Coverage Historical Data

* Premium members only.

The historical data trend for Ingersoll Rand's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Ingersoll Rand Interest Coverage Chart

Ingersoll Rand Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.10 8.52 7.92 6.82 5.95

Ingersoll Rand Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.30 5.79 6.12 6.53 4.92

IR vs DOV, OTIS, XYL: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Ingersoll Rand's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ingersoll Rand Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Ingersoll Rand's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ingersoll Rand's Interest Coverage falls into.


IR
86GF Score
Ingersoll Rand Inc IR
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Ingersoll Rand Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ingersoll Rand's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Ingersoll Rand's Interest Expense was $-254 Mil. Its Operating Income was $1,510 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,783 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*1510/-253.9
=5.95

Ingersoll Rand's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Ingersoll Rand's Interest Expense was $-64 Mil. Its Operating Income was $314 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,777 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*314.2/-63.8
=4.92

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 4.92 mean?
Ingersoll Rand (IR) has a Interest Coverage of 4.92 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ingersoll Rand and its competitors. This is near median its historical median of 5.25. Over the past decade, Ingersoll Rand's Interest Coverage has ranged from 0.92 to 8.52. According to the industry distribution chart, Ingersoll Rand ranks #1635 out of 2330 companies in the Industrial Products industry, placing it in the top 70.2%.
Is Ingersoll Rand's Interest Coverage too high?
Ingersoll Rand's current Interest Coverage of 4.92 is near median its 10-year median of 5.25. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 8.52. The Industrial Products industry median Interest Coverage is 14.84. Ingersoll Rand's value of 4.92 is 66.8% below this industry median. Based on the distribution chart, Ingersoll Rand ranks #1635 out of 2330 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Ingersoll Rand has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ingersoll Rand's Interest Coverage compare to DOV and OTIS?
According to the Industrial Products industry distribution chart, Ingersoll Rand ranks #1635 out of 2330 companies for Interest Coverage. This places Ingersoll Rand in the lower half of its industry. The industry median Interest Coverage is 14.84. Ingersoll Rand's value of 4.92 is 66.8% below this benchmark. Historically, Ingersoll Rand's own Interest Coverage has ranged from 0.92 to 8.52 over the past decade. While the company's 10-year median is 5.25 vs. the industry median of 14.84, Ingersoll Rand has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.84, based on 2,330 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ingersoll Rand's current Interest Coverage of 4.92 is 66.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ingersoll Rand and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ingersoll Rand's current Interest Coverage is 4.92, which is near median its own 10-year median of 5.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ingersoll Rand stock overvalued right now?
Based on GuruFocus' analysis, Ingersoll Rand (IR) is currently considered Modestly Undervalued. The stock's GF Value™ is $91.24, compared to a current price of $78.32 — trading 14.2% below its estimated fair value. The current Interest Coverage is 4.92, which is near median its 10-year median of 5.25 and 66.8% below the Industrial Products industry median of 14.84. Ingersoll Rand's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Ingersoll Rand (IR), the current Interest Coverage is 4.92 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ingersoll Rand (IR) Overvalued in 2026?

Based on GuruFocus' analysis, Ingersoll Rand stock appears to be undervalued. The current stock price of $78.32 is trading 14.2% below its estimated GF Value™ of $91.24. GuruFocus considers Ingersoll Rand to be Modestly Undervalued.

Key valuation signals for IR:

  • Interest Coverage: 4.92 (near median its 10-year median of 5.25)
  • GF Value™: $91.24 vs. price of $78.32 (14.2% below fair value)
  • GF Score™: 86/100 with 2 warning signs
  • Industry Position: 66.8% below the Industrial Products median (#1635 of 2330)

No single metric tells the full story. See the IR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ingersoll Rand Business Description

Other Exchanges 5GD:Germany
Address 525 Harbour Place Drive, Suite 600, Davidson, NC, USA, 28036
Ingersoll Rand was formed through the merger of Gardner Denver and Ingersoll Rand's industrial segment. The firm's portfolio consists of two business lines: industrial technologies and services, and precision and science technologies. Ingersoll Rand serves a variety of end markets, including industrial, medical, and energy. Its broad portfolio of products includes compression, blower and vacuum, and fluid management. Ingersoll Rand generated roughly $7.7 billion in revenue in 2025.
86GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$78.32
Price
$91.24
GF Value