Trane Technologies plc (TT)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 3,143,400 | 3,693,500 | 3,282,600 | 2,937,000 | 2,694,200 | 3,669,800 | 3,182,000 | 2,875,800 | 2,569,900 | 11,887,200 | 11,680,300 | 11,215,600 | 11,037,600 | 11,994,000 | 12,804,100 | 13,977,700 | 14,717,900 | 14,427,100 | 14,102,400 | 13,901,300 |
| Inventory | US$ in thousands | 2,152,100 | 2,191,800 | 2,355,800 | 2,343,700 | 1,993,800 | 1,949,200 | 1,886,900 | 1,872,300 | 1,530,800 | 1,482,800 | 1,386,300 | 1,373,100 | 1,189,200 | 1,229,200 | 1,353,000 | 1,463,700 | 1,278,600 | 1,890,600 | 1,950,500 | 1,983,700 |
| Inventory turnover | 1.46 | 1.69 | 1.39 | 1.25 | 1.35 | 1.88 | 1.69 | 1.54 | 1.68 | 8.02 | 8.43 | 8.17 | 9.28 | 9.76 | 9.46 | 9.55 | 11.51 | 7.63 | 7.23 | 7.01 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,143,400K ÷ $2,152,100K
= 1.46
Trane Technologies plc has maintained a relatively stable inventory turnover ratio over the past eight quarters. The inventory turnover ratio indicates how many times a company's inventory is sold and replaced over a specific period. Trane's average inventory turnover over this period is approximately 5.26, suggesting that the company is efficient in managing its inventory levels.
The slight fluctuations in the inventory turnover ratio from quarter to quarter may be influenced by seasonal factors or changes in demand for Trane's products. Despite these variations, the company's inventory turnover remains within a consistent range, demonstrating a consistent ability to convert inventory into sales.
Overall, Trane Technologies plc's inventory turnover ratio indicates efficient inventory management practices, which is essential for controlling costs and maximizing profitability. The company's ability to maintain a relatively stable inventory turnover ratio suggests strong operational efficiency and effective inventory control measures in place.