Trane Technologies plc (TT)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 3,500,200 | 3,380,200 | 3,219,800 | 3,071,000 | 2,894,000 | 2,787,000 | 2,662,300 | 2,487,500 | 2,418,900 | 2,274,000 | 2,117,900 | 2,058,300 | 2,023,300 | 1,975,600 | 1,959,100 | 1,731,600 | 1,532,800 | 1,475,000 | 1,444,600 | 1,588,000 |
| Total assets | US$ in thousands | 20,146,700 | 20,903,700 | 20,199,200 | 19,341,200 | 19,391,900 | 18,903,200 | 18,906,500 | 17,897,400 | 18,081,600 | 17,739,800 | 17,680,800 | 17,636,900 | 18,059,800 | 18,202,200 | 18,369,400 | 17,824,800 | 18,156,700 | 17,939,400 | 17,223,600 | 17,635,600 |
| Operating ROA | 17.37% | 16.17% | 15.94% | 15.88% | 14.92% | 14.74% | 14.08% | 13.90% | 13.38% | 12.82% | 11.98% | 11.67% | 11.20% | 10.85% | 10.67% | 9.71% | 8.44% | 8.22% | 8.39% | 9.00% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $3,500,200K ÷ $20,146,700K
= 17.37%
Operating ROA for Trane Technologies plc has been showing a consistent positive trend over the analyzed period from March 31, 2020, to December 31, 2024. The metric started at 9.00% in March 2020 and gradually increased to 17.37% by the end of December 2024.
The company's ability to generate operating income from its assets improved steadily, indicating efficient asset utilization and effective management. This upward trend suggests that Trane Technologies plc has been able to enhance its operational efficiency and profitability relative to its asset base over time.
The increasing trend in operating ROA reflects positively on the company's operational performance and management effectiveness in generating profits from its assets. It also indicates a potential for sustainable growth and value creation for the shareholders over the analyzed period.