Trane Technologies plc (TT)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,023,900 | 1,756,500 | 1,423,400 | 854,900 | 1,410,900 |
| Total assets | US$ in thousands | 19,391,900 | 18,081,600 | 18,059,800 | 18,156,700 | 20,492,300 |
| ROA | 10.44% | 9.71% | 7.88% | 4.71% | 6.89% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $2,023,900K ÷ $19,391,900K
= 10.44%
Trane Technologies plc has shown a consistent improvement in its return on assets (ROA) over the past five years. The ROA has increased from 6.89% in 2019 to 10.44% in 2023. This indicates that the company has been effectively utilizing its assets to generate profits for its shareholders. The upward trend in ROA suggests that Trane Technologies plc is becoming more efficient in generating earnings relative to its total assets. This improvement is a positive sign for investors as it indicates the company's ability to generate more profits from its assets. Overall, the trend in ROA for Trane Technologies plc reflects positive financial performance and efficient asset management over the years.