Trane Technologies plc (TT)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 | 16,343,600 |
| Property, plant and equipment | US$ in thousands | 1,772,200 | 1,536,100 | 1,398,800 | 1,349,500 | 1,352,000 |
| Fixed asset turnover | 9.83 | 10.25 | 9.93 | 9.04 | 12.09 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $17,423,000K ÷ $1,772,200K
= 9.83
Trane Technologies plc's fixed asset turnover ratio has exhibited slight fluctuations over the past five years. The company maintained a relatively high fixed asset turnover ratio, hovering around the range of 9.19 to 10.41 during this period. This indicates that the company efficiently utilizes its fixed assets to generate sales revenue. The higher ratios suggest that Trane Technologies plc effectively generates sales relative to its investment in fixed assets. However, the slight variations in the ratio may indicate changes in the company's asset utilization efficiency over time. It would be beneficial to delve deeper into the company's operational and strategic factors to understand the drivers behind these fluctuations.