Trane Technologies plc (TT)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 14,279,500 | 13,383,500 | 13,285,800 | 13,118,800 | 13,055,900 | 11,578,700 | 11,415,800 | 11,358,900 | 11,322,100 | 1,609,000 | 1,586,600 | 1,359,600 | 1,158,400 | 1,170,400 | 1,204,800 | 1,419,200 | 1,625,700 | 2,072,900 | 2,099,800 | 2,142,800 |
| Revenue (ttm) | US$ in thousands | 17,422,900 | 17,077,000 | 16,568,400 | 16,055,800 | 15,750,100 | 15,248,500 | 14,597,800 | 14,234,700 | 13,892,000 | 13,496,200 | 13,266,900 | 12,575,200 | 12,196,000 | 13,164,400 | 14,008,900 | 15,396,900 | 16,343,600 | 16,500,000 | 16,202,200 | 16,044,100 |
| Gross profit margin | 81.96% | 78.37% | 80.19% | 81.71% | 82.89% | 75.93% | 78.20% | 79.80% | 81.50% | 11.92% | 11.96% | 10.81% | 9.50% | 8.89% | 8.60% | 9.22% | 9.95% | 12.56% | 12.96% | 13.36% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $14,279,500K ÷ $17,422,900K
= 81.96%
Trane Technologies plc has demonstrated an upward trend in its gross profit margin over the past eight quarters, ranging from 30.73% in Q2 2022 to 33.13% in Q4 2023. This indicates the company's ability to efficiently manage its production costs and generate revenue from its core operations. The consistent improvement in gross profit margin reflects positively on Trane's pricing strategy, cost control measures, and possibly economies of scale. Overall, the increasing trend in gross profit margin suggests that Trane Technologies plc has been effectively enhancing its profitability over the analyzed period.