Trane Technologies plc (TT)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 2,567,900 | 2,023,900 | 1,756,500 | 1,423,400 | 854,900 |
| Total assets | US$ in thousands | 20,146,700 | 19,391,900 | 18,081,600 | 18,059,800 | 18,156,700 |
| ROA | 12.75% | 10.44% | 9.71% | 7.88% | 4.71% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $2,567,900K ÷ $20,146,700K
= 12.75%
Trane Technologies plc has shown a positive trend in its return on assets (ROA) over the past five years, reflecting an improving management of its assets to generate profits. The ROA increased from 4.71% as of December 31, 2020, to 12.75% as of December 31, 2024. This indicates that the company has been more efficient in utilizing its assets to generate earnings over the period. The consistent growth in ROA suggests that Trane Technologies plc is effectively managing its assets to generate higher returns for its shareholders. This trend indicates the company's increasing profitability and efficiency in utilizing its resources to generate earnings. Overall, the improving ROA signifies that Trane Technologies plc has been successful in optimizing its asset base to enhance its profitability over the years.