Trane Technologies plc (TT)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,894,000 | 2,418,900 | 2,023,300 | 1,532,800 | 1,670,100 |
| Total assets | US$ in thousands | 19,391,900 | 18,081,600 | 18,059,800 | 18,156,700 | 20,492,300 |
| Operating ROA | 14.92% | 13.38% | 11.20% | 8.44% | 8.15% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,894,000K ÷ $19,391,900K
= 14.92%
Trane Technologies plc has demonstrated a consistent improvement in its operating return on assets (ROA) over the past five years. The operating ROA has increased from 9.85% in 2019 to 14.92% in 2023, indicating an upward trend in the company's efficiency in generating earnings from its operating assets.
This improvement suggests that Trane Technologies has been able to enhance its operational efficiency and profitability over the years, which is a positive sign for investors and stakeholders. The company's ability to generate a higher operating ROA reflects effective management of its assets to drive revenue and earnings growth.
Overall, the increasing trend in Trane Technologies' operating ROA indicates that the company is becoming more efficient in utilizing its assets to generate operating profits, highlighting its strong operational performance and financial health.