Trane Technologies plc (TT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 3,500,100 | 2,894,000 | 2,418,900 | 2,023,300 | 1,532,800 |
| Total assets | US$ in thousands | 20,146,700 | 19,391,900 | 18,081,600 | 18,059,800 | 18,156,700 |
| Operating ROA | 17.37% | 14.92% | 13.38% | 11.20% | 8.44% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $3,500,100K ÷ $20,146,700K
= 17.37%
Trane Technologies plc has exhibited a steady improvement in its operating return on assets (operating ROA) over the past five years. From 8.44% as of December 31, 2020, the operating ROA increased to 11.20% by December 31, 2021, showing a notable uptick. Subsequently, the operating ROA continued to rise, reaching 13.38% by the end of 2022, and accelerating further to 14.92% by December 31, 2023. The most recent data point as of December 31, 2024, highlights a significant improvement to 17.37%, demonstrating the company's enhanced operational efficiency in generating profits relative to its assets. This upward trend in operating ROA suggests that Trane Technologies plc has been effectively utilizing its assets to generate operating income, signaling positive performance and potential for sustained growth.