Trane Technologies plc (TT)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,023,900 | 1,756,500 | 1,423,400 | 854,900 | 1,410,900 |
| Revenue | US$ in thousands | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 | 16,343,600 |
| Net profit margin | 11.62% | 11.15% | 10.25% | 7.01% | 8.63% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $2,023,900K ÷ $17,423,000K
= 11.62%
Trane Technologies plc's net profit margin has shown a generally increasing trend over the past five years. The net profit margin was 8.50% in 2019, increased to 6.86% in 2020, and continued to improve to 10.07% in 2021 and 10.98% in 2022. In the most recent year, the net profit margin reached 11.45%, indicating an enhanced ability of the company to convert revenue into profit. This progressive trend suggests that Trane Technologies plc has been effectively managing its expenses relative to its revenue, resulting in improved profitability over time.