Trane Technologies plc (TT)

Quick ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash US$ in thousands 1,095,300 1,220,500 2,159,200 3,289,900 1,278,600
Short-term investments US$ in thousands 25,000
Receivables US$ in thousands 2,956,800 2,780,100 2,429,400 2,202,100 2,184,600
Total current liabilities US$ in thousands 6,053,500 5,686,800 4,752,400 4,338,900 5,238,600
Quick ratio 0.67 0.70 0.97 1.27 0.67

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,095,300K + $—K + $2,956,800K) ÷ $6,053,500K
= 0.67

The quick ratio of Trane Technologies plc has shown fluctuations over the past five years. The ratio was 0.78 at the end of 2023, a slight increase from the previous year's ratio of 0.77. This indicates that the company's ability to meet its short-term obligations with its most liquid assets improved slightly in 2023.

Comparing the recent ratio to the figures from the previous years, we observe a declining trend from 2021 when the quick ratio was 1.04, followed by a more significant drop to 1.32 in 2020. The ratio then decreased to 0.93 in 2019. The decline in the quick ratio may suggest that the company's liquidity position weakened during these years.

Overall, the quick ratio of Trane Technologies plc has fluctuated, with a recent slight improvement in 2023. This ratio indicates the company's ability to cover its short-term obligations with its most liquid assets, such as cash and accounts receivable, and provides insights into its liquidity position.


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Trane Technologies plc Quick Ratio