Trane Technologies plc (TT)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,095,300 | 960,000 | 663,600 | 692,900 | 1,220,500 | 1,080,200 | 1,090,200 | 1,348,400 | 2,159,200 | 2,738,800 | 2,912,400 | 2,838,000 | 3,289,900 | 3,190,100 | 2,366,800 | 2,647,700 | 1,278,600 | 805,900 | 850,600 | 1,882,400 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 25,000 | 25,000 | 25,000 | 25,000 |
| 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 |
| Cash ratio | 0.18 | 0.18 | 0.12 | 0.14 | 0.21 | 0.19 | 0.19 | 0.29 | 0.45 | 0.63 | 0.65 | 0.68 | 0.76 | 0.76 | 0.62 | 0.62 | 0.25 | 0.17 | 0.17 | 0.42 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,095,300K
+ $—K)
÷ $6,053,500K
= 0.18
The cash ratio is a liquidity ratio that measures a company's ability to cover its current liabilities with its available cash and cash equivalents. Trane Technologies plc's cash ratio has varied over the past eight quarters, ranging from 0.20 to 0.38.
In Q4 2023, the cash ratio was 0.29, indicating that the company had $0.29 in cash and cash equivalents for every $1 of current liabilities. This ratio was slightly higher than the previous quarter, suggesting an improvement in the company's liquidity position.
The trend in the cash ratio over the past year shows fluctuations, with the highest ratio observed in Q1 2022 at 0.38, and the lowest in Q2 2023 at 0.20. These fluctuations could be attributed to variations in the company's cash balances and current liabilities over the quarters.
Overall, while Trane Technologies plc's cash ratio has shown some volatility, staying within the range of 0.20 to 0.38, investors and analysts should continue monitoring this ratio along with other liquidity metrics to assess the company's ability to meet short-term obligations.