Trane Technologies plc (TT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 7,457,400 | 6,995,200 | 6,088,600 | 6,255,900 | 6,407,700 |
| ROE | 34.43% | 28.93% | 28.85% | 22.75% | 13.34% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $2,567,900K ÷ $7,457,400K
= 34.43%
Trane Technologies plc has exhibited a positive trend in its return on equity (ROE) over the past five years. The ROE increased from 13.34% as of December 31, 2020, to 34.43% by December 31, 2024. This consistent growth indicates the company's improved efficiency in generating profits from shareholder equity during the period.
The ROE of 22.75% recorded as of December 31, 2021, marked a significant increase from the previous year, suggesting effective management of assets and liabilities to enhance profitability. The subsequent ROE figures for December 31, 2022 (28.85%), December 31, 2023 (28.93%), and December 31, 2024 (34.43%) demonstrate sustained positive momentum in delivering returns to shareholders.
Trane Technologies plc's rising ROE signifies the company's ability to create value for its shareholders through better utilization of equity capital. This trend indicates improved financial performance and operational efficiency, reflecting positively on the company's overall management strategy and execution.