Trane Technologies plc (TT)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 2,567,900 | 2,467,900 | 2,322,200 | 2,153,100 | 2,023,900 | 1,958,700 | 1,880,300 | 1,803,400 | 1,756,500 | 1,635,200 | 1,493,000 | 1,448,400 | 1,423,400 | 1,350,300 | 1,345,200 | 1,119,300 | 854,900 | 906,300 | 964,500 | 1,181,800 |
| Total stockholders’ equity | US$ in thousands | 7,457,400 | 7,591,500 | 6,947,300 | 6,889,700 | 6,995,200 | 6,681,800 | 6,258,800 | 6,036,100 | 6,088,600 | 5,858,300 | 5,723,500 | 5,998,600 | 6,255,900 | 6,475,100 | 6,457,300 | 6,296,700 | 6,407,700 | 6,366,700 | 5,936,900 | 5,772,600 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $2,567,900K ÷ $7,457,400K
= 34.43%
Trane Technologies plc has shown a generally positive trend in its Return on Equity (ROE) over the analyzed period. The ROE started at 20.47% in March 2020 and experienced some fluctuations in the following quarters, reaching a low of 13.34% by December 2020. However, the company then demonstrated a significant improvement in its ROE, with consecutive increases in the metric from March 2021 onwards.
The ROE steadily rose to 34.43% by December 2024, indicating that Trane Technologies plc has been effectively utilizing its equity to generate profits for its shareholders. The consistent upward trend in ROE suggests that the company has been efficiently managing its assets to generate higher returns relative to the equity provided by its shareholders. Overall, the increasing ROE reflects positively on the company's financial performance and efficiency in creating value for its stakeholders.
See also:
Trane Technologies plc Return on Equity (ROE) (Quarterly Data)