Trane Technologies plc (TT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 2.70 | 2.75 | 2.91 | 2.81 | 2.77 | 2.83 | 3.02 | 2.97 | 2.97 | 3.03 | 3.09 | 2.94 | 2.89 | 2.81 | 2.84 | 2.83 | 2.83 | 2.82 | 2.90 | 3.06 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $20,146,700K ÷ $7,457,400K
= 2.70
The financial leverage ratio of Trane Technologies plc has fluctuated over the past few years, ranging from a low of 2.70 to a high of 3.09. The trend in the financial leverage ratio indicates that the company's level of debt compared to equity has been generally stable, with some slight variations.
In the most recent period, the financial leverage ratio stood at 2.70 as of December 31, 2024, which suggests that the company relied more on equity financing rather than debt. This could indicate a conservative approach to managing its capital structure and financial risk.
Overall, the financial leverage ratio provides insights into how Trane Technologies plc is utilizing debt to finance its operations and investments. It is important for stakeholders to monitor changes in this ratio over time to understand the company's financial health and risk profile.