Trane Technologies plc (TT)
Receivables turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 19,814,000 | 19,303,200 | 18,684,100 | 18,022,900 | 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 |
| Receivables | US$ in thousands | 3,090,200 | 3,393,400 | 3,433,300 | 2,939,800 | 2,956,800 | 3,142,500 | 3,199,800 | 2,606,000 | 2,780,100 | 2,867,400 | 2,758,200 | 2,429,800 | 2,429,400 | 2,432,300 | 2,532,100 | 2,159,400 | 2,202,100 | 2,312,600 | 2,316,400 | 2,091,800 |
| Receivables turnover | 6.41 | 5.69 | 5.44 | 6.13 | 5.89 | 5.43 | 5.18 | 6.16 | 5.67 | 5.32 | 5.29 | 5.86 | 5.72 | 5.55 | 5.24 | 5.82 | 5.54 | 5.69 | 6.05 | 7.36 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $19,814,000K ÷ $3,090,200K
= 6.41
The receivables turnover ratio for Trane Technologies plc has shown varying trends over the past few years. The ratio indicates how efficiently the company is able to collect payments from its customers.
From March 31, 2020, to June 30, 2020, the receivables turnover decreased from 7.36 to 6.05, implying a decrease in the speed of collecting receivables. The ratio continued to decrease reaching 5.24 by June 30, 2021, indicating a slower collection process.
However, there was a slight improvement in the ratio by March 31, 2022, when it increased to 5.86, suggesting a slightly more efficient collection of receivables. The trend continued with a fluctuation in the ratio over the following quarters, reflecting potential changes in the company's credit and collection policies or its customer base.
Overall, the receivables turnover ratio for Trane Technologies plc has shown some fluctuation over the analyzed period, with the company collecting its receivables on average between 5 to 6 times a year. Further analysis and comparison with industry benchmarks could provide more insights into the company's receivables management efficiency.
See also:
Trane Technologies plc Receivables Turnover (Quarterly Data)