Trane Technologies plc (TT)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.13 | 1.29 | 1.19 | 1.26 | 1.12 | 1.14 | 1.09 | 1.31 | 1.36 | 1.62 | 1.58 | 1.59 | 1.59 | 1.67 | 1.66 | 1.55 | 1.77 | 1.28 | 1.23 | 1.58 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,869,900K ÷ $6,053,500K
= 1.13
Trane Technologies plc's current ratio has displayed fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, stood at 1.13 in Q4 2023, a decrease compared to the previous quarter's ratio of 1.29. This decline indicates a potential weakening in the company's short-term liquidity position.
Examining the trend further, the current ratio has not shown a consistent pattern of improvement or deterioration, as it fluctuated between 1.09 and 1.31 over the past two years. The highest ratio was observed in Q1 2022 at 1.31, suggesting strong short-term solvency at that point in time. On the other hand, the lowest ratio was recorded in Q4 2022 at 1.12, indicating a relatively weaker liquidity position.
Overall, the current ratio of Trane Technologies plc has not demonstrated a clear trend in the short term, fluctuating within a moderate range. Further analysis and consideration of other financial metrics are recommended to assess the company's overall liquidity and financial health accurately.