Trane Technologies plc (TT)
Quick 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 | 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 |
| Receivables | US$ in thousands | 2,956,800 | 3,142,500 | 3,199,800 | 2,606,000 | 2,780,100 | 2,867,400 | 2,758,200 | 2,429,800 | 2,429,400 | 2,432,300 | 2,532,100 | 2,159,400 | 2,202,100 | 2,312,600 | 2,316,400 | 2,091,800 | 2,184,600 | 2,968,900 | 3,108,300 | 2,710,300 |
| 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 |
| Quick ratio | 0.67 | 0.79 | 0.69 | 0.68 | 0.70 | 0.71 | 0.68 | 0.82 | 0.97 | 1.20 | 1.21 | 1.20 | 1.27 | 1.32 | 1.22 | 1.12 | 0.67 | 0.80 | 0.77 | 1.03 |
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 over the past eight quarters has ranged from 0.75 to 0.91, indicating some fluctuations in the company's ability to cover its short-term liabilities with its most liquid assets. The most recent quick ratio for Q4 2023 stands at 0.78, which is slightly lower than the previous quarter but in line with the values observed in Q1 and Q4 of 2022.
A quick ratio below 1.0 may suggest that Trane Technologies plc may have some difficulty in meeting its short-term obligations using only its most liquid assets. However, it is essential to consider the industry norms and the company's historical trends for a more accurate assessment of its liquidity position.
Overall, Trane Technologies plc's quick ratio has shown some variability, and further analysis of the company's financial performance and liquidity management is recommended to gain a deeper understanding of its financial health.