Company: IR
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0001628280-25-006391
Chunk: 35

Company: Ingersoll Rand Inc.
Filing Date: 2025-02-19
Form: 10-K
Item: Item 7
Chunk 35
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4,050.4 Less: Current liabilities1,818.9 1,827.3 Net working capital$2,344.6 $2,223.1 Operating Working CapitalAccounts receivable$1,335.4 $1,234.2 Plus: Inventories (excluding LIFO)1,134.2 1,073.6 Plus: Contract assets111.2 85.6 Less: Accounts payable843.6 801.2 Less: Contract liabilities318.6 331.2 Operating working capital$1,418.6 $1,261.0 

Net working capital increased $121.5 million to $2,344.6 million as of December 31, 2024 from $2,223.1 million as of December 31, 2023. Operating working capital increased $157.6 million to $1,418.6 million as of December 31, 2024 from $1,261.0 million as of December 31, 2023. Operating working capital as of December 31, 2024 was 19.6% of 2024 revenues as compared to 18.3% as of December 31, 2023 as a percentage of 2023 revenues. The increase in operating working capital was primarily due to higher accounts receivable, higher inventories, higher contract assets, and lower contract liabilities, partially offset by higher accounts payable. The increase in accounts receivable was primarily due to the timing of revenues in the quarter and seasonal changes in collection timing and to acquisitions completed in 2024. The increase in contract assets was primarily due to the timing of revenue recognition on percentage of complete jobs in relation to contractual billing milestones and to acquisitions completed in 2024. The increase in inventory was primarily attributable to acquisitions completed in 2024. The increase in accounts payable was primarily due to the timing of vendor cash disbursements and acquisitions completed in 2024. The decrease in contract liabilities was primarily due to the timing of customer milestone payments for in-process engineered to order contracts, partially offset by acquisitions completed in 2024.

Cash Flows

The following table reflects the major categories of cash flows for the years ended December 31, 2024 and 2023, respectively.

20242023Cash flows provided by (used in) continuing operations:Cash flows provided by operating activities$1,396.7 $1,377.4