Trane Technologies plc (NYSE:TT)

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Trane Technologies plc, adjusted total assets

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Total assets	18,081,600)	18,059,800)	18,156,700)	20,492,300)	17,914,900)
Adjustments
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	545,919)
Add: Allowance for credit losses	43,700)	39,900)	40,000)	42,200)	32,700)
Add: LIFO reserve²	129,900)	72,600)	41,100)	85,600)	83,500)
Less: Noncurrent deferred tax assets, net³	—)	—)	—)	—)	—)
After Adjustment
Adjusted total assets	18,255,200)	18,172,300)	18,237,800)	20,620,100)	18,577,019)

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).

¹ Operating lease right-of-use asset (before adoption of FASB Topic 842). See details »

² LIFO reserve. See details »

³ Noncurrent deferred tax assets, net. See details »

An examination of the asset base from 2018 to 2022 reveals a period of volatility followed by relative stabilization. Total assets experienced a sharp increase in 2019 before declining in 2020 and remaining largely consistent through 2022. Adjusted total assets mirror this trajectory, consistently maintaining a premium over the reported total asset values throughout the period.

Asset Growth and Contraction Patterns: A significant peak occurred in 2019, where total assets rose to 20,492,300 thousand US$, representing a substantial increase from the 17,914,900 thousand US$ reported in 2018. This growth was followed by a sharp contraction in 2020, with assets falling to 18,156,700 thousand US$, effectively returning the balance sheet to levels similar to the 2018 baseline.
Asset Stabilization Trend: Between 2020 and 2022, both total and adjusted assets exhibited minimal variance. Total assets fluctuated within a narrow range between 18,059,800 thousand US$ and 18,156,700 thousand US$, suggesting a period of consolidated asset management and operational stability.
Analysis of Asset Adjustments: Adjusted total assets consistently exceed total assets throughout the observed five-year period. The most pronounced adjustment occurred in 2018, with a variance of 662,119 thousand US$. This gap narrowed significantly in 2019, 2020, and 2021, before slightly widening in 2022 to 173,600 thousand US$. This indicates that while adjustments are a permanent feature of the financial reporting for these items, the magnitude of these adjustments has generally decreased since 2018.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Trane Technologies plc, adjusted current liabilities

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Current liabilities	5,686,800)	4,752,400)	4,338,900)	4,861,900)	4,315,700)
Adjustments
Less: Current deferred revenue	110,500)	115,400)	108,600)	107,300)	103,100)
Less: Current standard product warranty liability	120,400)	106,600)	127,700)	157,600)	149,500)
After Adjustment
Adjusted current liabilities	5,455,900)	4,530,400)	4,102,600)	4,597,000)	4,063,100)

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).

An analysis of current liability obligations from 2018 to 2022 reveals a general upward trajectory, characterized by moderate volatility in the intermediate years and a significant increase in the final reporting period.

Current Liability Trends: Reported current liabilities exhibited a fluctuating pattern, rising from 4,315,700 thousand USD in 2018 to a peak of 4,861,900 thousand USD in 2019. A contraction was observed in 2020, with liabilities decreasing to 4,338,900 thousand USD, before beginning a steady climb. The most substantial increase occurred between 2021 and 2022, where liabilities rose from 4,752,400 thousand USD to 5,686,800 thousand USD.
Adjusted Liability Analysis: Adjusted current liabilities mirrored the trends of the reported figures, maintaining a consistent inverse correlation. The adjusted values moved from 4,063,100 thousand USD in 2018 to 5,455,900 thousand USD in 2022. Similar to the reported liabilities, the adjusted figures experienced a dip in 2020 to 4,102,600 thousand USD before escalating in the subsequent two years.
Evaluation of Adjustments: The variance between reported and adjusted current liabilities remained relatively stable throughout the five-year period. The absolute difference fluctuated within a narrow band, ranging from a high of 264,900 thousand USD in 2019 to a low of 222,000 thousand USD in 2021. Because the adjustment amount did not scale proportionally with the overall increase in liabilities—particularly during the sharp rise in 2022—it is evident that the adjusting items are likely composed of recurring, fixed-sum obligations rather than variable components linked to the scale of operations.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Trane Technologies plc, adjusted total liabilities

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Total liabilities	11,976,400)	11,786,700)	11,729,600)	13,179,900)	10,850,100)
Adjustments
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	545,919)
Less: Noncurrent deferred tax liabilities²	526,600)	438,100)	420,800)	464,600)	331,400)
Less: Deferred revenue	317,700)	311,700)	304,400)	304,100)	292,200)
Less: Standard product warranty liability	323,600)	296,200)	282,700)	284,700)	278,900)
After Adjustment
Adjusted total liabilities	10,808,500)	10,740,700)	10,721,700)	12,126,500)	10,493,519)

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).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Noncurrent deferred tax liabilities. See details »

Total liabilities and adjusted total liabilities exhibited a similar trajectory between 2018 and 2022, characterized by a significant spike in 2019 followed by a correction in 2020 and a period of relative stability through 2022.

Total Liability Trends: Total liabilities experienced a sharp increase of approximately 21.5% from 2018 to 2019, peaking at 13,179,900 thousand US$. A subsequent contraction occurred in 2020, bringing the figure down to 11,729,600 thousand US$. From 2021 to 2022, the trend shifted to marginal growth, concluding the period at 11,976,400 thousand US$.
Adjusted Total Liability Trends: The adjusted total liabilities followed a parallel pattern, rising from 10,493,519 thousand US$ in 2018 to a peak of 12,126,500 thousand US$ in 2019. A reduction to 10,721,700 thousand US$ was noted in 2020, with the balance remaining largely stagnant over the following two years, ending at 10,808,500 thousand US$ in 2022.
Liability Adjustment Variance: A notable expansion is observed in the variance between total and adjusted liabilities. The difference was 356,581 thousand US$ in 2018, but expanded significantly to 1,053,400 thousand US$ by 2019. This gap persisted and grew further by the end of the period, reaching 1,167,900 thousand US$ in 2022. This indicates that a larger proportion of total liabilities is being excluded from the adjusted calculations as time progressed.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Trane Technologies plc, adjusted total Trane Technologies plc shareholders’ equity

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Total Trane Technologies plc shareholders’ equity	6,088,600)	6,255,900)	6,407,700)	7,267,600)	7,022,700)
Adjustments
Less: Net deferred tax assets (liabilities)¹	(526,600)	(438,100)	(420,800)	(464,600)	(331,400)
Add: Allowance for credit losses	43,700)	39,900)	40,000)	42,200)	32,700)
Add: LIFO reserve²	129,900)	72,600)	41,100)	85,600)	83,500)
Add: Deferred revenue	317,700)	311,700)	304,400)	304,100)	292,200)
Add: Standard product warranty liability	323,600)	296,200)	282,700)	284,700)	278,900)
Add: Noncontrolling interest	16,600)	17,200)	19,400)	44,800)	42,100)
After Adjustment
Adjusted total equity	7,446,700)	7,431,600)	7,516,100)	8,493,600)	8,083,500)

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).

¹ Net deferred tax assets (liabilities). See details »

² LIFO reserve. See details »

A comparative analysis of shareholders' equity and adjusted total equity from 2018 through 2022 reveals a general trajectory of growth followed by a period of contraction and subsequent divergence between reported and adjusted values.

Total Shareholders' Equity Trend: Reported equity exhibited an initial increase, rising from US$ 7,022,700 thousand in 2018 to a peak of US$ 7,267,600 thousand in 2019. This growth was followed by a significant reduction in 2020, where equity fell to US$ 6,407,700 thousand. A continued downward trend was observed through 2021 and 2022, with the balance ending at US$ 6,088,600 thousand, representing a total decrease of approximately 13.6% from the 2019 peak.
Adjusted Total Equity Trend: Adjusted equity followed a similar pattern to reported equity in the early stages, peaking in 2019 at US$ 8,493,600 thousand. A sharp decline occurred in 2020, bringing the value to US$ 7,516,100 thousand. Unlike the reported equity, which continued to decline steadily, the adjusted equity showed signs of stabilization between 2021 and 2022, concluding the period at US$ 7,446,700 thousand.
Variance Between Reported and Adjusted Equity: A consistent positive discrepancy is maintained between the total shareholders' equity and the adjusted total equity. The magnitude of this adjustment has expanded over time. The variance stood at US$ 1,060,800 thousand in 2018 and increased to US$ 1,358,100 thousand by 2022. This indicates that the adjustments applied to the equity base have grown in relative importance as the reported equity balance declined.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Trane Technologies plc, adjusted capitalization table

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Short-term borrowings and current maturities of long-term debt	1,048,000)	350,400)	775,600)	650,500)	350,600)
Long-term debt,excluding current maturities	3,788,300)	4,491,700)	4,496,500)	4,922,900)	3,740,700)
Total reported debt	4,836,300)	4,842,100)	5,272,100)	5,573,400)	4,091,300)
Total Trane Technologies plc shareholders’ equity	6,088,600)	6,255,900)	6,407,700)	7,267,600)	7,022,700)
Total reported capital	10,924,900)	11,098,000)	11,679,800)	12,841,000)	11,114,000)
Adjustments to Debt
Add: Operating lease liability (before adoption of FASB Topic 842)¹	—)	—)	—)	—)	545,919)
Add: Operating lease current (classified in Other current liabilities)²	155,800)	147,300)	138,800)	172,000)	—)
Add: Operating lease noncurrent (classified in Other noncurrent liabilities)³	313,500)	296,000)	276,500)	394,400)	—)
Adjusted total debt	5,305,600)	5,285,400)	5,687,400)	6,139,800)	4,637,219)
Adjustments to Equity
Less: Net deferred tax assets (liabilities)⁴	(526,600)	(438,100)	(420,800)	(464,600)	(331,400)
Add: Allowance for credit losses	43,700)	39,900)	40,000)	42,200)	32,700)
Add: LIFO reserve⁵	129,900)	72,600)	41,100)	85,600)	83,500)
Add: Deferred revenue	317,700)	311,700)	304,400)	304,100)	292,200)
Add: Standard product warranty liability	323,600)	296,200)	282,700)	284,700)	278,900)
Add: Noncontrolling interest	16,600)	17,200)	19,400)	44,800)	42,100)
Adjusted total equity	7,446,700)	7,431,600)	7,516,100)	8,493,600)	8,083,500)
After Adjustment
Adjusted total capital	12,752,300)	12,717,000)	13,203,500)	14,633,400)	12,720,719)

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).

¹ Operating lease liability (before adoption of FASB Topic 842). See details »

² Operating lease current (classified in Other current liabilities). See details »

³ Operating lease noncurrent (classified in Other noncurrent liabilities). See details »

⁴ Net deferred tax assets (liabilities). See details »

⁵ LIFO reserve. See details »

Between 2018 and 2022, the capitalization structure exhibited a peak in total capital in 2019, followed by a gradual contraction in both reported and adjusted figures. Total reported capital decreased from 12.84 billion USD in 2019 to 10.92 billion USD by the end of 2022, whereas adjusted total capital remained more resilient, concluding the period at 12.75 billion USD.

Debt Trends and Adjustments: Total reported debt saw a significant increase from 4.09 billion USD in 2018 to a peak of 5.57 billion USD in 2019, followed by a steady decline to 4.84 billion USD in 2022. Adjusted total debt followed a similar trajectory but remained consistently higher than reported figures, with a variance ranging approximately between 460 million and 560 million USD throughout the analyzed period.
Equity Performance: Reported shareholders' equity peaked in 2019 at 7.27 billion USD before entering a period of steady decline, reaching 6.09 billion USD by December 31, 2022. The adjusted equity figures are substantially higher than reported levels, maintaining a positive variance that expanded from 1.06 billion USD in 2018 to 1.36 billion USD in 2022.
Total Capitalization Analysis: A systemic upward adjustment is evident across the capitalization table. The gap between reported and adjusted total capital grew from 1.61 billion USD in 2018 to 1.83 billion USD in 2022. While reported capital declined by approximately 14.8% from its 2019 peak, adjusted total capital demonstrated greater stability, declining by only 13.2% over the same timeframe.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Trane Technologies plc, adjusted net revenues

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Net revenues	15,991,700)	14,136,400)	12,454,700)	16,598,900)	15,668,200)
Adjustment
Add: Increase (decrease) in deferred revenue	6,000)	7,300)	1,600)	11,900)	(800)
After Adjustment
Adjusted net revenues	15,997,700)	14,143,700)	12,456,300)	16,610,800)	15,667,400)

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).

Net revenues experienced significant fluctuation over the five-year period from 2018 to 2022. An initial increase was recorded in 2019, which was subsequently followed by a sharp contraction in 2020, marking the lowest revenue point of the analyzed period. A consistent upward recovery trend was observed in 2021 and 2022, with revenues returning to levels slightly exceeding those recorded in 2018 by the end of the period.

Revenue Adjustment Variance: The discrepancy between net revenues and adjusted net revenues is immaterial across all observed years. The variance remains at a negligible level relative to the total revenue volume, indicating that the adjustments applied to the revenue figures do not fundamentally alter the reported financial performance.
Trend Correlation: A near-perfect correlation is observed between the movements of net revenues and adjusted net revenues. Both metrics mirror the same growth and contraction patterns, confirming that the adjustments are non-systemic and do not introduce significant volatility or bias into the top-line growth rates.
Recovery Trajectory: Following the trough in 2020, the recovery path was steady, with year-over-year increases in both net and adjusted net revenues during 2021 and 2022. The scale of the recovery effectively neutralized the losses sustained during the 2020 downturn.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Trane Technologies plc, adjusted net earnings attributable to Trane Technologies plc

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Net earnings attributable to Trane Technologies plc	1,756,500)	1,423,400)	854,900)	1,410,900)	1,337,600)
Adjustments
Add: Deferred income tax expense (benefit)¹	67,800)	(25,200)	22,200)	16,800)	(143,800)
Add: Increase (decrease) in allowance for credit losses	3,800)	(100)	7,800)	9,500)	5,800)
Add: Increase (decrease) in LIFO reserve²	57,300)	31,500)	7,600)	2,100)	14,600)
Add: Increase (decrease) in deferred revenue	6,000)	7,300)	1,600)	11,900)	(800)
Add: Increase (decrease) in standard product warranty liability	27,400)	13,500)	31,300)	5,800)	8,400)
Less: Discontinued operations, net of tax	(21,500)	(20,600)	(121,400)	40,600)	(21,500)
Add: Other comprehensive income (loss), net of tax	(130,200)	(6,600)	242,800)	(41,600)	(188,300)
Add: Comprehensive income (loss), net of tax, attributable to noncontrolling interest	16,600)	12,700)	17,800)	18,500)	16,900)
After Adjustment
Adjusted net earnings	1,826,700)	1,477,100)	1,307,400)	1,393,300)	1,071,900)

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).

¹ Deferred income tax expense (benefit). See details »

² Increase (decrease) in LIFO reserve. See details »

A comprehensive review of the financial results from 2018 to 2022 reveals a general upward trajectory in both reported and adjusted net earnings, despite a significant volatility event in 2020. While reported net earnings experienced a substantial contraction in 2020, adjusted net earnings demonstrated greater resilience, suggesting that the reported decline was primarily driven by non-recurring items or specific accounting adjustments rather than a fundamental collapse in operational profitability.

Reported Net Earnings Trend: Net earnings attributable to the company grew modestly between 2018 and 2019, followed by a sharp decline in 2020, where earnings fell to 854.9 million USD. A strong recovery followed, with earnings returning to 2019 levels by 2021 and reaching a period high of 1.76 billion USD by the end of 2022.
Adjusted Net Earnings Trend: Adjusted net earnings exhibited a more stable growth pattern, increasing from 1.07 billion USD in 2018 to 1.83 billion USD in 2022. Unlike the reported figures, the adjusted earnings only saw a marginal decrease in 2020, remaining above 1.3 billion USD, which indicates a consistent underlying performance trend.
Analysis of Earnings Adjustments: The variance between reported and adjusted earnings shifted significantly over the five-year period. In 2018, reported earnings exceeded adjusted earnings, suggesting negative adjustments. By 2020, a wide divergence occurred, with adjusted earnings exceeding reported earnings by approximately 452.5 million USD, highlighting the impact of significant one-time charges or non-cash expenses during that fiscal year. From 2021 onward, a consistent pattern emerged where adjusted net earnings remained higher than reported net earnings, indicating the ongoing exclusion of specific costs to present a normalized view of profitability.

AI Ask an analyst for more