Trane Technologies plc (TT)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 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 | 7,267,600 | 7,237,600 | 7,130,500 | 6,885,800 |
| Debt-to-equity ratio | 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 | 0.68 | 0.68 | 0.69 | 0.76 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,977,900K ÷ $6,995,200K
= 0.57
Trane Technologies plc's debt-to-equity ratio has shown some fluctuation over the past eight quarters. In Q4 2023, the ratio stood at 0.68, indicating a relatively low level of debt compared to equity. This represents an improvement from the previous quarter's ratio of 0.72.
Looking back over the past year, the trends in the debt-to-equity ratio have shown some variability. In Q3 and Q4 of 2022, the ratio was relatively consistent at around 0.79 to 0.83, indicating a moderate level of debt compared to equity.
In the recent quarters of Q2 and Q1 2023, the ratio increased to 0.80 and then leveled off at 0.80, suggesting that the company took on more debt relative to equity during this period. However, it is worth noting that the ratio in Q4 2023 decreased, potentially signaling that the company is managing its debt levels more effectively.
Overall, while the debt-to-equity ratio has shown some fluctuations, the company's ability to maintain a ratio below 1 indicates a balanced capital structure with a reasonable level of debt to support its operations and growth initiatives.