Trane Technologies plc (TT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 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 | 2.82 | 2.81 | 2.90 | 2.87 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,391,900K ÷ $6,995,200K
= 2.77
The financial leverage ratio of Trane Technologies plc has displayed some fluctuations over the past eight quarters. The ratio ranged from 2.77 to 3.09 during this period. The trend indicates an increase in leverage from the last quarter of 2022 to the second quarter of 2023, reaching a peak at 3.09, followed by a slight decrease in the subsequent quarters. This suggests that the company has been using more debt to finance its operations compared to equity, which can amplify returns but also increase financial risk. Despite the fluctuations, the company's financial leverage ratio has generally remained at relatively high levels, indicating a significant reliance on debt financing. Investors and stakeholders should closely monitor this trend to assess the impact of leverage on Trane Technologies' financial stability and future performance.