Trane Technologies plc (TT)
Number of days of payables
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 1.75 | 1.55 | 1.29 | 1.44 | 7.26 | |
| Number of days of payables | days | 208.45 | 235.15 | 283.35 | 253.85 | 50.27 |
December 31, 2024 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 1.75
= 208.45
Trane Technologies plc's number of days of payables have shown some fluctuations over the years.
- As of December 31, 2020, the company took approximately 50.27 days to pay its payables on average. This indicates a relatively efficient payment cycle.
- However, there was a significant increase in the number of days of payables to 253.85 days by December 31, 2021. This suggests that the company was taking longer to settle its payables, which could potentially signal liquidity issues or changes in payment terms.
- By December 31, 2022, the number of days of payables further increased to 283.35 days. This extended period could indicate a potential strain on the company's working capital management or supplier relationships.
- There was a slight decrease in the number of days of payables to 235.15 days by December 31, 2023. The company may have taken steps to improve its payables management during this period.
- By December 31, 2024, the number of days of payables decreased further to 208.45 days. This improvement suggests that the company may have optimized its payables processes or negotiated better payment terms with its suppliers.
Overall, fluctuations in the number of days of payables can provide insights into Trane Technologies plc's working capital management, liquidity position, and relationships with suppliers. Further analysis and comparison with industry benchmarks would be beneficial to fully assess the company's payables management efficiency.