Trane Technologies plc (TT)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 16,053,100 | 14,922,700 | 14,701,400 | 14,496,800 | 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 |
| Revenue (ttm) | US$ in thousands | 19,814,000 | 19,303,200 | 18,684,100 | 18,022,900 | 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 |
| Gross profit margin | 81.02% | 77.31% | 78.68% | 80.44% | 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% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $16,053,100K ÷ $19,814,000K
= 81.02%
Trane Technologies plc has shown fluctuations in its gross profit margin over the past few years. The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the company's ability to control production costs and generate profit.
From March 2020 to June 2021, there was a gradual improvement in the gross profit margin, increasing from 9.22% to 11.96%. This indicates that Trane Technologies was effectively managing its production costs during this period.
However, there was a significant spike in the gross profit margin in December 2021 to 81.50%, followed by another high of 82.89% in December 2022. This sudden and substantial increase could be due to various factors such as changes in pricing strategies, cost reductions, or fluctuations in sales volume.
Subsequently, there was a decline in the gross profit margin from March 2023 to December 2024, dropping to 77.31% by September 2024. This downward trend suggests potential challenges in cost control or changes in the company's pricing structure.
Overall, the gross profit margin of Trane Technologies plc has displayed volatility over the analyzed period, with periods of improvement followed by significant fluctuations. Further analysis of the company's cost structure, pricing strategies, and market conditions would be necessary to fully understand the factors influencing these changes in the gross profit margin.