Trane Technologies plc (TT)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,814,100 | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 |
| Property, plant and equipment | US$ in thousands | 2,024,500 | 1,772,200 | 1,536,100 | 1,398,800 | 1,349,500 |
| Fixed asset turnover | 9.79 | 9.83 | 10.25 | 9.93 | 9.04 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $19,814,100K ÷ $2,024,500K
= 9.79
Trane Technologies plc's fixed asset turnover has shown a consistent improvement over the past five years, increasing from 9.04 in December 31, 2020, to 9.93 in December 31, 2021, and reaching 10.25 by December 31, 2022. This trend indicates that the company is generating more revenue for each dollar invested in fixed assets. However, there was a slight decline in the fixed asset turnover to 9.83 by December 31, 2023, and further to 9.79 by December 31, 2024.
Overall, the company has been effectively utilizing its fixed assets to generate sales revenue, but the slight decrease in fixed asset turnover in the most recent years may warrant further investigation into the efficiency of the company's asset utilization.