Trane Technologies plc (TT)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 9.95% | 12.56% | 12.96% | 13.36% |
| Operating profit margin | 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% | 10.22% | 8.37% | 8.84% | 9.38% |
| Pretax margin | 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% | 10.09% | 9.92% | 9.94% | 10.22% |
| Net profit margin | 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% | 8.63% | 8.30% | 8.80% | 8.83% |
Trane Technologies plc has shown overall improvement in its profitability ratios over the past eight quarters. The gross profit margin has been consistently increasing, indicating the company's ability to effectively manage its production costs and generate higher revenues. This trend suggests efficient operations and pricing strategies.
Moreover, the operating profit margin has also been on an upward trajectory, reflecting effective cost management and operational efficiency. The continuous improvement in this ratio signifies that the company is able to control its operating expenses and generate profits from its core business activities.
Furthermore, the pretax margin and net profit margin have shown a similar positive trend, indicating that Trane Technologies plc has been successful in increasing its profitability at both pre-tax and post-tax levels. This suggests effective tax planning and management, as well as efficient allocation of resources to generate higher net income for shareholders.
Overall, the consistent improvement in profitability ratios signifies strong financial performance and sound business fundamentals for Trane Technologies plc.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 8.15% | 6.80% | 6.93% | 7.61% |
| Return on assets (ROA) | 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% | 6.89% | 6.74% | 6.90% | 7.16% |
| Return on total capital | 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% | 15.52% | 15.34% | 15.14% | 15.18% |
| Return on equity (ROE) | 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% | 19.41% | 18.91% | 19.99% | 20.58% |
Trane Technologies plc has shown consistent improvement in its profitability ratios over the past eight quarters. The operating return on assets (Operating ROA) has gradually increased from 11.67% in Q1 2022 to 14.92% in Q4 2023, indicating efficient utilization of assets to generate operating profits.
The overall return on assets (ROA) has also demonstrated a positive trend, with Q4 2023 reaching 10.44%, compared to 8.21% in Q1 2022. This indicates the company's ability to generate profit from its total assets, including both operating and non-operating activities.
Return on total capital has consistently improved, with Q4 2023 at 24.58%, reflecting the company's efficient utilization of both equity and debt capital to generate returns for its stakeholders.
Furthermore, the return on equity (ROE) has shown a steady increase from 24.15% in Q1 2022 to 28.93% in Q4 2023, indicating the company's ability to generate profit for its shareholders from the equity invested in the business.
Overall, Trane Technologies plc's profitability ratios demonstrate a positive trend, indicating effective management of assets, capital, and equity to drive profitability and create value for its investors.
See also:
Trane Technologies plc Profitability Ratios (Quarterly Data)