Trane Technologies plc (TT)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 7,337,800 | 6,869,900 | 6,379,200 | 6,470,900 | 6,905,600 |
| Total current liabilities | US$ in thousands | 6,068,900 | 6,053,500 | 5,686,800 | 4,752,400 | 4,338,900 |
| Current ratio | 1.21 | 1.13 | 1.12 | 1.36 | 1.59 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,337,800K ÷ $6,068,900K
= 1.21
Trane Technologies plc's current ratio has experienced a slight decline over the past years. In 2020, the current ratio stood at 1.59, indicating a healthy liquidity position. However, by the end of 2024, the current ratio had decreased to 1.21. While the company's current assets still appear to be relatively sufficient to cover its current liabilities, the decreasing trend suggests a potential challenge in meeting short-term obligations in the future. Management may need to closely monitor and potentially improve the efficiency of current asset management to ensure the company maintains a strong liquidity position.