Trane Technologies plc (TT)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 1.55 | 1.29 | 1.44 | 7.26 | 10.68 | |
| Number of days of payables | days | 235.15 | 283.35 | 253.85 | 50.27 | 34.18 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.55
= 235.15
Trane Technologies plc's number of days of payables has shown a fluctuating trend over the past five years. In 2023, the company took approximately 62.54 days to pay its payables, which marks a decrease from the previous year. The decrease in the number of days of payables suggests that Trane Technologies improved its efficiency in paying off its liabilities to suppliers in 2023 compared to 2022.
However, when compared to 2021, the number of days of payables increased slightly in 2023, indicating that the company took slightly longer to settle its payables in the most recent year. Despite this increase, the company's payment period in 2023 remains within a reasonable range.
In the earlier years, from 2020 to 2019, Trane Technologies generally showed an increasing trend in the number of days of payables, indicating a lengthening of the payment period over time. This could potentially be a strategy to manage cash flow or negotiate favorable payment terms with suppliers.
Overall, Trane Technologies plc's number of days of payables has varied over the years, but the company has been effectively managing its payable obligations within acceptable limits. A lower number of days of payables generally indicates better liquidity management and stronger supplier relationships.