Trane Technologies plc (TT)
Fixed asset turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 17,422,900 | 17,077,000 | 16,568,400 | 16,055,800 | 15,750,100 | 15,248,500 | 14,597,800 | 14,234,700 | 13,892,000 | 13,496,200 | 13,266,900 | 12,575,200 | 12,196,000 | 13,164,400 | 14,008,900 | 15,396,900 | 16,343,600 | 16,500,000 | 16,202,200 | 16,044,100 |
| Property, plant and equipment | US$ in thousands | 1,772,200 | 1,683,800 | 1,654,700 | 1,582,300 | 1,536,100 | 1,432,100 | 1,425,900 | 1,422,200 | 1,398,800 | 1,336,700 | 1,324,900 | 1,327,700 | 1,349,500 | 1,314,100 | 1,314,700 | 1,326,200 | 1,352,000 | 1,779,100 | 1,794,100 | 1,738,400 |
| Fixed asset turnover | 9.83 | 10.14 | 10.01 | 10.15 | 10.25 | 10.65 | 10.24 | 10.01 | 9.93 | 10.10 | 10.01 | 9.47 | 9.04 | 10.02 | 10.66 | 11.61 | 12.09 | 9.27 | 9.03 | 9.23 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,422,900K ÷ $1,772,200K
= 9.83
Trane Technologies plc has demonstrated a relatively stable fixed asset turnover ratio over the past eight quarters, ranging from 9.97 to 10.81. The fixed asset turnover ratio measures the efficiency with which the company utilizes its fixed assets to generate revenue. A higher ratio indicates that the company is efficiently using its fixed assets to generate sales.
The consistent range of values around 10 suggests that Trane Technologies is effectively managing its fixed assets to generate revenue, maintaining a consistent level of efficiency in this regard. However, it is important to note that a very high or very low fixed asset turnover ratio could signify potential issues with asset utilization or underutilization.
Overall, the trend of Trane Technologies plc's fixed asset turnover ratio indicates a consistent and efficient utilization of its fixed assets to generate sales, reflecting positively on the company's operational efficiency in asset management.
See also:
Trane Technologies plc Net Fixed Asset Turnover (Quarterly Data)