Trane Technologies plc (TT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 81.02% | 77.31% | 78.68% | 80.44% | 81.96% | 78.37% | 80.19% | 81.71% | 82.89% | 75.93% | 78.20% | 79.80% | 81.50% | 11.92% | 11.96% | 10.81% | 9.50% | 8.89% | 8.60% | 9.22% |
| Operating profit margin | 17.67% | 17.51% | 17.23% | 17.04% | 16.61% | 16.32% | 16.07% | 15.49% | 15.36% | 14.91% | 14.51% | 14.46% | 14.56% | 14.64% | 14.77% | 13.77% | 12.57% | 11.20% | 10.31% | 10.31% |
| 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% |
| Net profit margin | 12.96% | 12.78% | 12.43% | 11.95% | 11.62% | 11.47% | 11.35% | 11.23% | 11.15% | 10.72% | 10.23% | 10.18% | 10.25% | 10.01% | 10.14% | 8.90% | 7.01% | 6.88% | 6.88% | 7.68% |
Trane Technologies plc has shown a steady improvement in its profitability ratios over the past few years.
1. Gross profit margin has been increasing gradually from around 8-11% to a peak of over 80% by the end of 2022, before slightly decreasing to around 78-82% in the following quarters. This indicates the company has managed to increase its gross profit relative to its sales.
2. Operating profit margin has also exhibited a positive trend, rising from around 10% to 17% by the end of 2024. This shows that Trane Technologies has been able to control its operating expenses effectively and improve operational efficiency.
3. Pretax margin has consistently improved over the years, starting at around 9% and reaching 16% by the end of 2024. This reflects the company's ability to generate higher profits before considering taxes on its operations.
4. Net profit margin has also shown a positive trajectory, increasing from around 7-8% to nearly 13% by the end of 2024. This reveals that Trane Technologies has been successful in managing its overall profitability after accounting for all costs and expenses.
Overall, Trane Technologies plc has demonstrated commendable progress in its profitability ratios, showcasing an efficient management of its resources and operations to drive profitability growth over the years.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 12.75% | 11.81% | 11.50% | 11.13% | 10.44% | 10.36% | 9.95% | 10.08% | 9.71% | 9.22% | 8.44% | 8.21% | 7.88% | 7.42% | 7.32% | 6.28% | 4.71% | 5.05% | 5.60% | 6.70% |
| Return on total capital | 29.16% | 27.66% | 27.70% | 26.86% | 25.12% | 23.89% | 23.59% | 22.98% | 23.85% | 23.09% | 21.86% | 19.29% | 18.52% | 17.60% | 17.57% | 15.38% | 12.84% | 13.14% | 14.00% | 16.41% |
| Return on equity (ROE) | 34.43% | 32.51% | 33.43% | 31.25% | 28.93% | 29.31% | 30.04% | 29.88% | 28.85% | 27.91% | 26.09% | 24.15% | 22.75% | 20.85% | 20.83% | 17.78% | 13.34% | 14.24% | 16.25% | 20.47% |
Trane Technologies plc has shown a positive trend in its profitability ratios over the years. The Operating Return on Assets (Operating ROA) has been improving steadily from 9.00% in March 2020 to 17.37% in December 2024. This indicates the company's ability to generate operating profits from its assets efficiently.
Similarly, the Return on Assets (ROA) has also shown a positive trend, increasing from 6.70% in March 2020 to 12.75% in December 2024. This ratio signifies the overall profitability of the company in relation to its total assets.
Moreover, the Return on Total Capital has consistently increased from 16.41% in March 2020 to 29.16% in December 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders.
Furthermore, the Return on Equity (ROE) has also shown an upward trajectory, rising from 20.47% in March 2020 to 34.43% in December 2024. This ratio demonstrates the company’s efficiency in utilizing equity investments to generate profits for its shareholders.
Overall, Trane Technologies plc has demonstrated strong profitability metrics, reflecting efficient management of its assets and capital to generate positive returns for both shareholders and investors.
See also:
Trane Technologies plc Profitability Ratios (Quarterly Data)