Stock Analysis on Net
Stock Analysis on Net

Trane Technologies plc (NYSE:TT)

$22.49

This company has been moved to the archive! The financial data has not been updated since May 3, 2023.

Common-Size Income Statement
Quarterly Data

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Trane Technologies plc, common-size consolidated income statement (quarterly data)

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3 months ended: 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 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018
Net revenues
Cost of goods sold
Gross profit
Selling and administrative expenses
Operating income
Interest expense
Other income (expense), net
Earnings before income taxes
(Provision) benefit for income taxes
Earnings from continuing operations
Discontinued operations, net of tax
Net earnings (loss)
Net earnings attributable to noncontrolling interests
Net earnings (loss) attributable to Trane Technologies plc

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

Gross Profit and Cost of Goods Sold Trends
The gross profit margin fluctuated between approximately 28% and 33% of net revenues across the periods, showing a pattern of periodic increases followed by declines. Correspondingly, the cost of goods sold maintained an inverse relationship, generally ranging between approximately 66% and 72%. Notably, there were quarters, such as mid-2018, mid-2021, and late 2022, where gross profit margins peaked, potentially indicating improved production efficiencies or pricing strategies during those times.
Selling and Administrative Expenses
Selling and administrative expenses as a percentage of net revenues showed a downward trend from around 21% in early 2018 to a low near 14.6% by mid-2022, followed by a slight increase towards the end of the period analyzed. This decrease suggests enhanced cost control or operational efficiencies, although the minor uptick in the last observed quarters may warrant monitoring for signs of rising overhead costs.
Operating Income Patterns
Operating income demonstrated significant volatility, ranging from lows near 5.85% to highs above 17% of net revenues. Peaks were generally observed in quarters with lower selling and administrative expenses and higher gross profit margins. The lowest operating income occurred around the first quarter of 2020, which could reflect external pressures or disruptions.
Interest Expense and Other Income/Expense
Interest expense consistently ranged between approximately -2.4% and -1.1%, with a general downward trend over the years, indicating possibly reduced debt levels or improved borrowing terms. Other income and expenses exhibited inconsistent patterns, oscillating close to zero but with occasional positive or negative spikes, suggesting irregular or non-recurring items impacting net profitability.
Earnings Before Income Taxes and Income Tax Provision
Earnings before income taxes followed a similar trend to operating income, showing fluctuations from approximately 4% to over 15%. The provision for income taxes was variable, occasionally showing benefits or low charges, but generally constituting a small negative percentage relative to net revenues. The variability in tax provision may reflect changes in tax rates, credits, or one-time tax adjustments.
Net Earnings and Earnings Attributable to the Company
Net earnings as a percentage of net revenues showed clear volatility, peaking near 12-13% in several quarters and dipping below zero once in early 2020. Earnings attributable specifically to the company closely mirrored net earnings trends, confirming that the majority of profitability was retained by the company after accounting for noncontrolling interests, which remained minimal and stable across the periods.
Impact of Discontinued Operations
Discontinued operations had a generally marginal but occasionally negative effect on net earnings, with a noticeable loss impact during early 2020. The data suggest that discontinued operations were not a significant contributor to profit or loss in most quarters but did create some variability in net results.
Overall Financial Performance Trends
The overall financial performance exhibited cyclical fluctuations potentially corresponding with external market conditions or internal operational factors. Periods of stronger gross margins and lower administrative expenses correlated with improved operating income and net earnings. The sharp declines seen around the onset of 2020 may align with global disruptions affecting the business environment. The gradual improvement and stabilization of profit margins following this period reflect recovery and adaptation efforts.