Name: Trane Technologies plc (NYSE:TT) | Common-Size Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Trane Technologies plc, common-size consolidated balance sheet: liabilities and stockholders’ equity

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	11.57%	9.90%	8.37%	8.83%	9.52%
Accrued compensation and benefits	2.99%	3.02%	2.48%	2.68%	2.97%
Accrued expenses and other current liabilities	11.09%	11.46%	8.77%	9.04%	9.65%
Short-term borrowings and current maturities of long-term debt	5.80%	1.94%	4.27%	3.17%	1.96%
Current liabilities	31.45%	26.31%	23.90%	23.73%	24.09%
Long-term debt,excluding current maturities	20.95%	24.87%	24.76%	24.02%	20.88%
Postemployment and other benefit liabilities	3.69%	4.49%	5.64%	5.96%	6.66%
Deferred and noncurrent income taxes	3.76%	3.22%	3.19%	3.33%	3.01%
Other noncurrent liabilities	6.38%	6.37%	7.11%	7.28%	5.93%
Noncurrent liabilities	34.78%	38.95%	40.71%	40.59%	36.47%
Total liabilities	66.24%	65.26%	64.60%	64.32%	60.56%
Ordinary shares, $1.00 par value	1.40%	1.44%	1.45%	1.28%	1.49%
Ordinary shares held in treasury, at cost	-9.51%	-9.52%	-9.47%	-8.39%	-9.60%
Retained earnings	46.02%	46.25%	46.79%	47.49%	52.69%
Accumulated other comprehensive loss	-4.24%	-3.53%	-3.48%	-4.91%	-5.38%
Total Trane Technologies plc shareholders’ equity	33.67%	34.64%	35.29%	35.47%	39.20%
Noncontrolling interest	0.09%	0.10%	0.11%	0.22%	0.23%
Total equity	33.76%	34.74%	35.40%	35.68%	39.44%
Total liabilities and equity	100.00%	100.00%	100.00%	100.00%	100.00%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Accounts payable: The proportion of accounts payable as a percentage of total liabilities and equity showed a generally increasing trend over the period, starting at 9.52% in 2018 and rising to 11.57% by 2022, indicating a growing reliance on trade credit or supplier financing.
Accrued compensation and benefits: This item experienced minor fluctuations, remaining relatively stable around 3%, with a slight decline from 2.97% in 2018 to 2.48% in 2020, then a small rebound to 2.99% in 2022, suggesting consistency in accrued employee-related obligations.
Accrued expenses and other current liabilities: Accrued expenses and other current liabilities decreased initially from 9.65% in 2018 to 8.77% in 2020, but then increased substantially to 11.09% by 2022, implying higher short-term obligations in recent years.
Short-term borrowings and current maturities of long-term debt: This category showed volatility, with a notable increase from 1.96% in 2018 to 5.8% in 2022, including a peak in 2020 at 4.27% and then a dip in 2021. The rise suggests increased short-term debt exposure towards the end of the period.
Current liabilities: Current liabilities as a whole maintained an upward trajectory, increasing from 24.09% in 2018 to 31.45% in 2022. This rising trend reflects an expansion in the company’s short-term financial obligations.
Long-term debt, excluding current maturities: Long-term debt remained relatively stable around the mid-20% range until 2021 but declined to 20.95% in 2022, indicating a reduction in long-term leverage after a peak of 24.87% in 2021.
Postemployment and other benefit liabilities: These liabilities steadily decreased throughout the period from 6.66% in 2018 to 3.69% in 2022, suggesting a declining burden from such obligations on the company’s balance sheet.
Deferred and noncurrent income taxes: Deferred and noncurrent income tax liabilities exhibited slight growth, increasing from 3.01% in 2018 to 3.76% in 2022, indicating a modest upward pressure from deferred tax obligations.
Other noncurrent liabilities: This category increased initially from 5.93% in 2018 to 7.28% in 2019, then declined slightly to 6.38% in 2022, showing moderate variability but overall stability in other long-term liabilities.
Noncurrent liabilities: Noncurrent liabilities increased from 36.47% in 2018 to around 40.71% in 2020 before gradually declining to 34.78% in 2022, highlighting a peak and subsequent reduction in longer-term obligations.
Total liabilities: Total liabilities as a percentage of total liabilities and equity displayed a gradual increase from 60.56% in 2018 to 66.24% in 2022, reflecting growing overall leverage.
Ordinary shares, $1.00 par value: The proportion of ordinary shares remained relatively constant around 1.4%, indicating little change in the nominal value of issued shares relative to total financing.
Ordinary shares held in treasury, at cost: Treasury shares consistently represented a negative percentage around -9.5%, with slight fluctuations, indicating ongoing repurchase or holding of company shares over the period.
Retained earnings: Retained earnings declined from a high of 52.69% in 2018 to 46.02% in 2022, suggesting either dividend payments, share repurchases, or net losses impacting accumulated earnings.
Accumulated other comprehensive loss: This item showed a reducing trend in absolute terms from -5.38% in 2018 to -4.24% in 2022, indicating a slight improvement in other comprehensive income components or reduced losses.
Total shareholders’ equity: Total equity steadily decreased from 39.44% in 2018 to 33.76% in 2022, reflecting the relative increase in liabilities and the decrease in retained earnings, thus lowering the equity base as a proportion of total financing.
Noncontrolling interest: Noncontrolling interest was marginal and declined slightly over the period, from 0.23% in 2018 to 0.09% in 2022, indicating limited impact on the overall equity structure.
Overall trends: Overall, the company exhibited a gradual increase in total liabilities relative to equity, driven by rising current liabilities and a modest fluctuation and eventual decline in long-term debt. Equity proportions decreased correspondingly, influenced by declining retained earnings and stable treasury shares. The findings suggest an increasing leverage profile with shifts in the composition of liabilities, particularly more short-term obligations, alongside a contracting equity base.

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