Trane Technologies plc (TT)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,522,300 | 2,132,400 | 1,756,900 | 1,151,700 | 1,649,500 |
| Revenue | US$ in thousands | 17,423,000 | 15,750,300 | 13,892,000 | 12,196,000 | 16,343,600 |
| Pretax margin | 14.48% | 13.54% | 12.65% | 9.44% | 10.09% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $2,522,300K ÷ $17,423,000K
= 14.48%
Trane Technologies plc's pretax margin has shown a consistent upward trend over the past five years. The pretax margin increased from 10.49% in 2019 to 14.52% in 2023, indicating an improvement in the company's ability to generate profits before taxes relative to its total revenue. This suggests that the company has effectively managed its operating expenses and operational efficiency over the years, leading to a stronger profitability performance. The steady growth in pretax margin demonstrates Trane Technologies plc's ability to sustain and potentially enhance its profitability in the future.