Trane Technologies plc (TT)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,318,100 | 4,317,100 | 4,316,200 | 3,978,700 | 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 |
| Total assets | US$ in thousands | 20,146,700 | 20,903,700 | 20,199,200 | 19,341,200 | 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 |
| Debt-to-assets ratio | 0.21 | 0.21 | 0.21 | 0.21 | 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 |
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 shown a relatively stable trend over the past few years, ranging between 0.21 and 0.27. This ratio measures the proportion of the company's total debt to its total assets, reflecting the extent to which the company relies on debt financing. A lower ratio indicates a lower level of debt relative to assets, suggesting a lower financial risk and greater financial stability.
Trane Technologies plc's decreasing debt-to-assets ratio from 0.27 in June 2020 to 0.21 in June 2024 could imply effective debt management or an increase in asset base compared to debt. However, it's essential to consider other financial metrics and factors such as industry benchmarks, interest rates on debt, and the company's overall financial health to assess the complete picture of its leverage and financial risk.