Trane Technologies plc (TT)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 19,814,100 | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 |
| Total assets | US$ in thousands | 20,146,700 | 19,391,900 | 18,081,600 | 18,059,800 | 18,156,700 |
| Total asset turnover | 0.98 | 0.90 | 0.87 | 0.77 | 0.67 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $19,814,100K ÷ $20,146,700K
= 0.98
Trane Technologies plc's total asset turnover has shown a consistent upward trend over the years, indicating an improvement in the company's efficiency in generating revenue from its assets. The total asset turnover ratio increased from 0.67 in December 31, 2020, to 0.98 in December 31, 2024. This signifies that the company was able to generate $0.98 in revenue for every dollar of assets held at the end of 2024.
The increasing trend suggests that Trane Technologies plc has been using its assets more effectively to drive sales growth, which is a positive indicator of operational efficiency. A higher total asset turnover ratio generally indicates better utilization of assets to generate sales. It is essential for investors and stakeholders as it reflects the company's ability to make efficient use of its resources to drive revenue generation.