Trane Technologies plc (TT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.24 | 0.24 | 0.24 | 0.26 |
| Debt-to-capital ratio | 0.36 | 0.40 | 0.42 | 0.43 | 0.38 | 0.39 | 0.40 | 0.43 | 0.42 | 0.41 | 0.41 | 0.42 | 0.41 | 0.41 | 0.44 | 0.44 | 0.40 | 0.40 | 0.41 | 0.43 |
| 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 |
| 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 |
The solvency ratios of Trane Technologies plc indicate the company's ability to meet its long-term financial obligations and the extent to which its operations are funded by debt.
The debt-to-assets ratio has remained relatively stable around 0.27 over the past few quarters, indicating that approximately 27% of the company's assets are financed by debt.
The debt-to-capital ratio has shown some fluctuation, but generally remained in the range of 0.41 to 0.45. This suggests that between 41% and 45% of the company's capital structure is composed of debt.
The debt-to-equity ratio has exhibited a slight upward trend from 0.79 to 0.81, with the last quarter showing a decrease compared to the previous quarter. This ratio indicates the proportion of the company's financing that comes from debt compared to equity.
The financial leverage ratio has also shown fluctuations, but has generally remained around 3.0. This ratio reflects the extent to which the company relies on debt to finance its operations.
Overall, the solvency ratios of Trane Technologies plc show a moderate level of debt in its capital structure, with fluctuations in the ratios over the quarters, indicating potential changes in the company's financing strategy or capital needs. It is important for stakeholders to monitor these ratios to assess the company's long-term financial health and ability to meet its obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.76 | 11.44 | 10.97 | 10.73 | 10.54 | 9.95 | 9.21 | 8.84 | 8.52 | 8.06 | 7.87 | 6.74 | 5.63 | 5.70 | 5.87 | 6.69 | 7.79 | 8.16 | 8.55 | 9.23 |
Trane Technologies plc has demonstrated consistent and strong interest coverage ratios over the past eight quarters, ranging from 9.16 to 13.21. This indicates the company's ability to effectively meet its interest obligations from its operating profits. The upward trend in the interest coverage ratio over time signifies improving financial health and suggests that Trane Technologies plc has been efficiently managing its interest expenses. Overall, the company appears to have a stable financial position with ample earnings to cover its interest payments, which is a positive indicator for investors and creditors.