Trane Technologies plc (TT)
Debt-to-assets ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,977,900 | 4,476,300 | 4,476,600 | 4,481,800 | 3,788,300 | 3,787,500 | 3,786,700 | 4,492,600 | 4,491,700 | 4,490,700 | 4,489,800 | 4,496,300 | 4,496,500 | 4,494,200 | 4,618,200 | 4,624,800 | 4,922,900 | 4,921,900 | 4,920,600 | 5,226,500 |
| Total assets | US$ in thousands | 19,391,900 | 18,903,200 | 18,906,500 | 17,897,400 | 18,081,600 | 17,739,800 | 17,680,800 | 17,636,900 | 18,059,800 | 18,202,200 | 18,369,400 | 17,824,800 | 18,156,700 | 17,939,400 | 17,223,600 | 17,635,600 | 20,492,300 | 20,306,900 | 20,667,600 | 19,781,000 |
| Debt-to-assets ratio | 0.21 | 0.24 | 0.24 | 0.25 | 0.21 | 0.21 | 0.21 | 0.25 | 0.25 | 0.25 | 0.24 | 0.25 | 0.25 | 0.25 | 0.27 | 0.26 | 0.24 | 0.24 | 0.24 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,977,900K ÷ $19,391,900K
= 0.21
Trane Technologies plc's debt-to-assets ratio has exhibited relative stability over the past eight quarters, ranging from 0.25 to 0.27. This ratio indicates that, on average, the company finances approximately 25% to 27% of its assets through debt, while the remaining percentage represents assets financed through equity.
The consistent nature of the debt-to-assets ratio suggests that Trane Technologies plc has maintained a balanced capital structure over this period. It is important for investors and stakeholders to closely monitor this ratio to ensure that the company's leverage position remains sustainable and aligns with its overall financial strategy. Additionally, fluctuations in the debt-to-assets ratio could provide insights into the company's ability to manage debt levels effectively and its overall financial health.