Trane Technologies plc (TT)
Debt-to-equity 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 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 |
| Debt-to-equity ratio | 0.58 | 0.57 | 0.62 | 0.58 | 0.57 | 0.67 | 0.72 | 0.74 | 0.62 | 0.65 | 0.66 | 0.75 | 0.72 | 0.69 | 0.70 | 0.71 | 0.70 | 0.71 | 0.78 | 0.80 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $4,318,100K ÷ $7,457,400K
= 0.58
Trane Technologies plc has shown a declining trend in its debt-to-equity ratio over the past few years, indicating improved financial leverage. The ratio decreased from 0.80 as of March 31, 2020, to 0.58 as of December 31, 2024. This suggests that the company has been gradually reducing its reliance on debt to finance its operations and investments in comparison to equity. A lower debt-to-equity ratio generally reflects a lower financial risk and greater stability, as the company has more equity to cover its debt obligations. Trane Technologies plc's decreasing debt-to-equity ratio may indicate effective financial management and a stronger financial position over the observed period.