Trane Technologies plc (TT)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 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 | 16,343,600 | 16,500,000 | 16,202,200 | 16,044,100 |
| Total current assets | US$ in thousands | 6,869,900 | 6,726,900 | 6,675,000 | 6,074,800 | 6,379,200 | 6,299,100 | 6,125,200 | 6,030,500 | 6,470,900 | 6,991,400 | 7,125,100 | 6,622,100 | 6,905,600 | 6,973,500 | 6,344,700 | 6,559,800 | 9,293,800 | 6,103,100 | 6,351,500 | 7,084,700 |
| Total current liabilities | US$ in thousands | 6,053,500 | 5,214,200 | 5,593,200 | 4,831,400 | 5,686,800 | 5,545,500 | 5,630,300 | 4,594,400 | 4,752,400 | 4,313,500 | 4,512,900 | 4,174,600 | 4,338,900 | 4,170,100 | 3,829,200 | 4,240,800 | 5,238,600 | 4,776,100 | 5,180,200 | 4,488,500 |
| Working capital turnover | 21.34 | 11.29 | 15.32 | 12.91 | 22.75 | 20.23 | 29.50 | 9.91 | 8.08 | 5.04 | 5.08 | 5.14 | 4.75 | 4.70 | 5.57 | 6.64 | 4.03 | 12.43 | 13.83 | 6.18 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $17,422,900K ÷ ($6,869,900K – $6,053,500K)
= 21.34
The working capital turnover for Trane Technologies plc has shown fluctuations over the past eight quarters, ranging from a low of 10.08 in Q1 2022 to a high of 29.98 in Q2 2022.
In Q4 2023, the working capital turnover ratio stood at 21.65, indicating that the company generated $21.65 in revenue for every dollar of working capital invested during the quarter. Compared to the previous quarter, where the ratio was 11.45, the efficiency of utilizing working capital improved significantly.
Overall, the working capital turnover ratio for Trane Technologies plc has shown volatility, reflecting fluctuations in the company's ability to generate revenue relative to its investment in working capital. Further analysis would be needed to understand the factors driving these fluctuations and evaluate the effectiveness of the company's working capital management strategies.
See also:
Trane Technologies plc Working Capital Turnover (Quarterly Data)