Current Ratio
since 2005
Calculation
Trane Technologies plc, current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 1.12 | = | 6,379,200) | ÷ | 5,686,800) |
| Dec 31, 2021 | 1.36 | = | 6,470,900) | ÷ | 4,752,400) |
| Dec 31, 2020 | 1.59 | = | 6,905,600) | ÷ | 4,338,900) |
| Dec 31, 2019 | 1.28 | = | 6,217,200) | ÷ | 4,861,900) |
| Dec 31, 2018 | 1.33 | = | 5,732,000) | ÷ | 4,315,700) |
| Dec 31, 2017 | 1.27 | = | 6,119,100) | ÷ | 4,828,000) |
| Dec 31, 2016 | 1.55 | = | 5,579,300) | ÷ | 3,590,300) |
| Dec 31, 2015 | 1.26 | = | 4,609,400) | ÷ | 3,648,400) |
| Dec 31, 2014 | 1.56 | = | 5,707,900) | ÷ | 3,666,100) |
| Dec 31, 2013 | 1.68 | = | 5,716,700) | ÷ | 3,408,600) |
| Dec 31, 2012 | 1.19 | = | 4,942,700) | ÷ | 4,161,300) |
| Dec 31, 2011 | 1.26 | = | 5,182,600) | ÷ | 4,124,500) |
| Dec 31, 2010 | 1.27 | = | 5,370,700) | ÷ | 4,224,900) |
| Dec 31, 2009 | 1.21 | = | 4,827,300) | ÷ | 3,978,200) |
| Dec 31, 2008 | 0.98 | = | 5,399,700) | ÷ | 5,511,400) |
| Dec 31, 2007 | 2.38 | = | 7,700,700) | ÷ | 3,235,700) |
| Dec 31, 2006 | 1.13 | = | 4,095,900) | ÷ | 3,613,600) |
| Dec 31, 2005 | 1.33 | = | 4,248,200) | ÷ | 3,199,700) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
- Current assets
- The current assets demonstrated considerable variability over the period from 2005 to 2022. Beginning at approximately $4.25 billion in 2005, the figure increased steadily and peaked around 2007 at approximately $7.7 billion. A decline followed in subsequent years, reaching a low near $4.6 billion in 2015. After this trough, the current assets showed a general upward trend again, reaching a high of about $6.9 billion in 2020, before slightly decreasing to approximately $6.4 billion in 2022.
- Current liabilities
- Current liabilities also exhibited fluctuations but less dramatically than current assets. Initially at roughly $3.2 billion in 2005, liabilities rose and fell moderately, with a significant increase peaking above $5.5 billion in 2008. From 2009 to 2016, liabilities remained relatively stable around $3.6 to $4.2 billion, then showed a gradual increase from 2017 onward, reaching its highest point at about $5.7 billion in 2022.
- Current ratio
- The current ratio, which measures short-term liquidity, varied notably. It started at a comfortable level of 1.33 in 2005 but fell below 1.0 in 2008, indicating less liquidity relative to current liabilities during that year. Subsequently, the ratio rebounded markedly to 2.38 in 2007 before the drop. Post-2008, the ratio mostly stayed above 1.0, indicating adequate liquidity, with peaks around 1.68 in 2013 and 1.59 in 2020. However, the ratio declined to near 1.12 by 2022, suggesting a tightening in liquidity but still remaining above the critical threshold of 1.0.
- Overall Insights
- The company's liquidity position has experienced significant fluctuations over the period. The peak in current assets around 2007, along with a high current ratio, indicates a strong liquidity position at that time. The dip in both assets and the current ratio around 2008 aligns with a period of increased current liabilities, suggesting possible financial stress or operational challenges. Recovery in assets and improved liquidity ratios post-2010 reflect strengthening financial management or operational improvements. Toward the end of the period, despite a moderate decline in current assets and the current ratio, the company's liquidity remains reasonably stable but warrants monitoring to ensure it does not drop below a sustainable level.
Comparison to Competitors
Trane Technologies plc, current ratio, long-term trends, comparison to competitors
| Trane Technologies plc | Boeing Co. | Caterpillar Inc. | Eaton Corp. plc | GE Aerospace | Honeywell International Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 1.12 | 1.22 | 1.39 | 1.38 | 1.16 | 1.25 | 1.32 | 1.09 |
| Dec 31, 2021 | 1.36 | 1.33 | 1.46 | 1.04 | 1.28 | 1.30 | 1.42 | 1.19 |
| Dec 31, 2020 | 1.59 | 1.39 | 1.53 | 1.56 | 1.58 | 1.47 | 1.39 | 1.21 |
| Dec 31, 2019 | 1.28 | 1.05 | 1.47 | 1.70 | 1.16 | 1.34 | 1.22 | 1.08 |
| Dec 31, 2018 | 1.33 | 1.08 | 1.37 | 1.47 | — | 1.29 | 1.12 | 1.13 |
| Dec 31, 2017 | 1.27 | 1.16 | 1.35 | 1.64 | — | 1.38 | 1.38 | 1.35 |
| Dec 31, 2016 | 1.55 | 1.25 | 1.22 | 1.27 | — | 1.41 | 1.20 | 1.30 |
| Dec 31, 2015 | 1.26 | 1.35 | 1.31 | 1.43 | — | 1.09 | 1.15 | 1.18 |
| Dec 31, 2014 | 1.56 | 1.20 | 1.39 | 1.51 | — | 1.50 | 1.11 | 1.30 |
| Dec 31, 2013 | 1.68 | 1.26 | 1.40 | 1.78 | — | 1.49 | 1.20 | 1.29 |
| Dec 31, 2012 | 1.19 | 1.27 | 1.43 | 1.44 | — | 1.35 | 1.14 | 1.24 |
| Dec 31, 2011 | 1.26 | 1.21 | 1.33 | 1.60 | — | 1.31 | 1.16 | 1.38 |
| Dec 31, 2010 | 1.27 | 1.15 | 1.44 | 1.70 | — | 1.28 | 1.15 | 1.33 |
| Dec 31, 2009 | 1.21 | 1.07 | 1.39 | 1.68 | — | 1.25 | 1.17 | 1.29 |
| Dec 31, 2008 | 0.98 | 0.84 | 1.21 | 1.28 | — | 1.08 | 1.01 | 1.24 |
| Dec 31, 2007 | 2.38 | 0.86 | 1.15 | 1.30 | — | 1.15 | 1.11 | 1.26 |
| Dec 31, 2006 | 1.13 | 0.77 | 1.20 | 1.29 | — | 1.21 | 1.06 | 1.24 |
| Dec 31, 2005 | 1.33 | 0.78 | 1.19 | 1.21 | — | 1.15 | 1.12 | 1.12 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Capital Goods)
Trane Technologies plc, current ratio, long-term trends, comparison to sector (capital goods)
| Trane Technologies plc | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 1.12 | 1.22 |
| Dec 31, 2021 | 1.36 | 1.31 |
| Dec 31, 2020 | 1.59 | 1.43 |
| Dec 31, 2019 | 1.28 | 1.17 |
| Dec 31, 2018 | 1.33 | 1.17 |
| Dec 31, 2017 | 1.27 | 1.29 |
| Dec 31, 2016 | 1.55 | 1.27 |
| Dec 31, 2015 | 1.26 | 1.26 |
| Dec 31, 2014 | 1.56 | 1.29 |
| Dec 31, 2013 | 1.68 | 1.34 |
| Dec 31, 2012 | 1.19 | 1.31 |
| Dec 31, 2011 | 1.26 | 1.29 |
| Dec 31, 2010 | 1.27 | 1.28 |
| Dec 31, 2009 | 1.21 | 1.23 |
| Dec 31, 2008 | 0.98 | 1.07 |
| Dec 31, 2007 | 2.38 | 1.08 |
| Dec 31, 2006 | 1.13 | 1.05 |
| Dec 31, 2005 | 1.33 | 1.03 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Trane Technologies plc, current ratio, long-term trends, comparison to industry (industrials)
| Trane Technologies plc | Industrials | |
|---|---|---|
| Dec 31, 2022 | 1.12 | 1.20 |
| Dec 31, 2021 | 1.36 | 1.29 |
| Dec 31, 2020 | 1.59 | 1.41 |
| Dec 31, 2019 | 1.28 | 1.16 |
| Dec 31, 2018 | 1.33 | 1.13 |
| Dec 31, 2017 | 1.27 | 1.24 |
| Dec 31, 2016 | 1.55 | 1.22 |
| Dec 31, 2015 | 1.26 | 1.24 |
| Dec 31, 2014 | 1.56 | 1.26 |
| Dec 31, 2013 | 1.68 | 1.33 |
| Dec 31, 2012 | 1.19 | 1.30 |
| Dec 31, 2011 | 1.26 | 1.30 |
| Dec 31, 2010 | 1.27 | 1.28 |
| Dec 31, 2009 | 1.21 | 1.23 |
| Dec 31, 2008 | 0.98 | 1.06 |
| Dec 31, 2007 | 2.38 | 1.07 |
| Dec 31, 2006 | 1.13 | 1.05 |
| Dec 31, 2005 | 1.33 | 1.05 |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).