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Trane Technologies plc (NYSE:TT)

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

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

Microsoft Excel
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 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of goods sold -68.81 -70.06 -67.23 -68.42 -70.53 -70.82 -67.63 -66.82 -68.41 -70.18 -67.54 -68.83 -71.89 -69.97 -67.58 -68.34 -70.40 -70.47 -67.44 -68.02 -71.51
Gross profit 31.19% 29.94% 32.77% 31.58% 29.47% 29.18% 32.37% 33.18% 31.59% 29.82% 32.46% 31.17% 28.11% 30.03% 32.42% 31.66% 29.60% 29.53% 32.56% 31.98% 28.49%
Selling and administrative expenses -18.73 -15.69 -15.86 -14.62 -17.90 -16.97 -16.69 -16.18 -19.88 -17.61 -16.24 -17.68 -22.27 -19.78 -18.08 -17.30 -20.70 -18.06 -18.00 -17.29 -21.30
Operating income 12.46% 14.25% 16.91% 16.96% 11.57% 12.21% 15.68% 17.00% 11.70% 12.20% 16.22% 13.49% 5.85% 10.25% 14.35% 14.37% 8.91% 11.47% 14.56% 14.69% 7.19%
Interest expense -1.57 -1.37 -1.28 -1.33 -1.67 -1.57 -1.55 -1.55 -2.01 -1.95 -1.79 -1.95 -2.39 -1.52 -1.48 -1.43 -1.42 -1.26 -1.20 -1.15 -2.15
Other income (expense), net -0.26 -0.06 -0.43 -0.04 -0.02 0.42 -0.19 0.01 -0.24 -0.11 -0.13 -0.01 0.47 -0.25 -0.17 0.08 -0.53 -0.52 -0.21 -0.08 -0.12
Earnings before income taxes 10.63% 12.83% 15.21% 15.59% 9.88% 11.06% 13.95% 15.46% 9.45% 10.15% 14.30% 11.53% 3.93% 8.47% 12.70% 13.01% 6.96% 9.69% 13.15% 13.46% 4.92%
(Provision) benefit for income taxes -2.00 -1.80 -2.39 -3.26 -1.82 -1.84 -2.60 -3.21 -1.60 -2.28 -2.57 -2.66 -1.93 -1.79 -2.60 -2.72 -1.20 -3.12 0.03 -2.94 -0.98
Earnings from continuing operations 8.64% 11.02% 12.82% 12.33% 8.06% 9.22% 11.34% 12.25% 7.85% 7.87% 11.73% 8.87% 2.00% 6.68% 10.11% 10.29% 5.76% 6.57% 13.18% 10.52% 3.94%
Discontinued operations, net of tax -0.15 -0.12 -0.18 -0.04 -0.21 -0.22 -0.36 -0.01 0.03 -0.03 -0.16 -1.15 -2.98 0.58 0.56 -0.12 -0.06 0.14 -0.29 -0.14 -0.28
Net earnings (loss) 8.49% 10.90% 12.64% 12.29% 7.85% 9.00% 10.99% 12.25% 7.88% 7.84% 11.57% 7.71% -0.98% 7.25% 10.67% 10.17% 5.70% 6.71% 12.89% 10.39% 3.67%
Net earnings attributable to noncontrolling interests -0.11 -0.12 -0.10 -0.13 -0.10 -0.09 -0.08 -0.11 -0.09 -0.14 -0.11 -0.11 -0.12 -0.12 -0.11 -0.09 -0.11 -0.19 -0.11 -0.10 -0.11
Net earnings (loss) attributable to Trane Technologies plc 8.38% 10.78% 12.53% 12.15% 7.75% 8.90% 10.91% 12.13% 7.79% 7.70% 11.46% 7.61% -1.11% 7.13% 10.56% 10.07% 5.59% 6.52% 12.78% 10.28% 3.56%

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).

The financial performance exhibits a distinct seasonal cycle across all primary profitability metrics, with margins typically peaking in the second and third quarters and contracting in the first and fourth quarters. This cyclicality suggests a strong correlation between revenue generation and seasonal demand for the company's products.

Gross Profit Margins
Gross margins consistently fluctuate between approximately 28% and 33%. A recurring pattern is evident where margins reach their zenith in the June and September quarters and experience troughs in March and December. The peak gross margin of 33.18% occurred in June 2021, while the lowest margin of 28.11% was recorded in March 2020.
Operational Efficiency and S&A Expenses
Selling and administrative expenses as a percentage of net revenues show a general downward trend over the analyzed period, indicating improved operational leverage. Expenses decreased from a peak of 22.27% in March 2020 to a low of 14.62% in June 2022. The reduction in these expenses as a proportion of revenue has contributed significantly to the expansion of operating margins in more recent quarters.
Operating Income Trends
Operating income margins demonstrate higher volatility than gross margins, ranging from a low of 5.85% in March 2020 to a high of 17.00% in June 2021. The compression seen in the first quarter of 2020 represents a significant outlier, followed by a recovery and a general upward shift in the baseline operating margin from 2021 through 2022.
Interest and Non-Operating Items
Interest expenses have remained relatively stable, generally fluctuating between 1.2% and 2.4% of net revenues. Other income and expenses have had a negligible impact on the overall margin, typically remaining below 0.5% of net revenues, suggesting that profitability is driven almost entirely by core operations.
Net Earnings and Bottom-Line Profitability
Net earnings attributable to the company reflect the combined impact of seasonal operating trends and tax provisions. A notable deficit was recorded in March 2020, with net earnings falling to -1.11% of net revenues. Since that period, the company has maintained positive net margins, peaking at 12.53% in September 2022. The influence of discontinued operations has remained minimal, typically contributing less than 0.3% to the total revenue percentage.

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