Trane Technologies plc (TT)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,195,500 | 2,522,300 | 2,132,400 | 1,756,900 | 1,151,700 |
| Revenue | US$ in thousands | 19,814,100 | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 |
| Pretax margin | 16.13% | 14.48% | 13.54% | 12.65% | 9.44% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $3,195,500K ÷ $19,814,100K
= 16.13%
Trane Technologies plc has demonstrated a positive trend in its pretax margin over the past five years. The pretax margin, which reflects the company's efficiency in generating profits before taxes, increased from 9.44% as of December 31, 2020, to 16.13% as of December 31, 2024. This indicates an improving profitability of the company as it managed to control costs and increase income over the period. The steady growth in pretax margin highlights the company's ability to effectively manage its expenses and optimize its operations. This positive trend suggests that Trane Technologies plc has been making sound financial decisions and improving its operational efficiency, which bodes well for its overall financial health and sustainability.