Trane Technologies plc (TT)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 16,053,000 | 14,279,500 | 13,056,000 | 11,322,100 | 1,158,400 |
| Revenue | US$ in thousands | 19,814,100 | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 |
| Gross profit margin | 81.02% | 81.96% | 82.89% | 81.50% | 9.50% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $16,053,000K ÷ $19,814,100K
= 81.02%
The gross profit margin of Trane Technologies plc has exhibited a notable improvement over the period from December 31, 2020, to December 31, 2024. Starting at a relatively low 9.50% in December 2020, the gross profit margin showed a sharp increase to 81.50% in December 2021. This significant improvement continued in the subsequent years, with the margin reaching 82.89% by December 2022, 81.96% by December 2023, and 81.02% by December 2024.
The consistent upward trend in the gross profit margin indicates that Trane Technologies has been effectively managing its production costs and increasing its efficiency in generating revenue from its core business activities. A high gross profit margin suggests that the company is effectively controlling its cost of goods sold relative to its sales, which is a positive sign of operational performance and profitability.
Overall, the steady improvement in Trane Technologies' gross profit margin reflects the company's ability to enhance its operational efficiency and effectively manage its production costs, which can contribute to sustainable growth and profitability in the long term.