Trane Technologies plc (TT)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 3,195,600 | 3,058,500 | 2,889,200 | 2,683,900 | 2,522,400 | 2,432,500 | 2,301,300 | 2,191,400 | 2,132,400 | 2,003,100 | 1,853,000 | 1,794,600 | 1,756,900 | 1,690,700 | 1,678,700 | 1,413,500 | 1,151,700 | 1,176,700 | 1,225,500 | 1,451,200 |
| Revenue (ttm) | US$ in thousands | 19,814,000 | 19,303,200 | 18,684,100 | 18,022,900 | 17,422,900 | 17,077,000 | 16,568,400 | 16,055,800 | 15,750,100 | 15,248,500 | 14,597,800 | 14,234,700 | 13,892,000 | 13,496,200 | 13,266,900 | 12,575,200 | 12,196,000 | 13,164,400 | 14,008,900 | 15,396,900 |
| Pretax margin | 16.13% | 15.84% | 15.46% | 14.89% | 14.48% | 14.24% | 13.89% | 13.65% | 13.54% | 13.14% | 12.69% | 12.61% | 12.65% | 12.53% | 12.65% | 11.24% | 9.44% | 8.94% | 8.75% | 9.43% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $3,195,600K ÷ $19,814,000K
= 16.13%
Trane Technologies plc has demonstrated a consistent improvement in its pretax margin over the analyzed periods, indicating the company's efficiency in generating profits before taxes relative to its revenue. The pretax margin has steadily increased from 9.43% as of March 31, 2020, to 16.13% by December 31, 2024.
The gradual rise in pretax margin suggests that Trane Technologies plc has effectively managed its operating costs and has potentially benefited from revenue growth or improved operational efficiency. A rising pretax margin is generally viewed positively by investors as it signifies the company's ability to convert sales into profits before accounting for tax implications.
Furthermore, the sustained growth in pretax margin indicates operational effectiveness and strategic decision-making within the organization. It reflects management's efforts to control expenses and optimize revenue streams, ultimately enhancing shareholder value and financial performance.
Overall, the upward trend in Trane Technologies plc's pretax margin portrays a healthy financial performance and a favorable outlook for the company's profitability in the foreseeable future, barring any significant shifts in the business environment or economic conditions.