Trane Technologies plc (TT)
Debt-to-assets ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,318,100 | 3,977,900 | 3,788,300 | 4,491,700 | 4,496,500 |
| Total assets | US$ in thousands | 20,146,700 | 19,391,900 | 18,081,600 | 18,059,800 | 18,156,700 |
| Debt-to-assets ratio | 0.21 | 0.21 | 0.21 | 0.25 | 0.25 |
December 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,318,100K ÷ $20,146,700K
= 0.21
The debt-to-assets ratio of Trane Technologies plc has remained relatively stable over the past five years, fluctuating between 0.21 and 0.25. This ratio indicates that, on average, approximately 21% to 25% of the company's total assets are financed by debt. A lower debt-to-assets ratio suggests a lower financial risk for the company, as it indicates a lower dependence on debt to fund its operations and investments. Trane Technologies plc's consistent ratio over the years may signal a balanced approach to capital structure management, maintaining a healthy level of debt relative to its total assets. Overall, the stability of the debt-to-assets ratio suggests a prudent financial management strategy by the company.