Operating Profit Margin
since 2005
Calculation
Trane Technologies plc, operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Net revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 15.13% | = | 100 | × | 2,418,900) | ÷ | 15,991,700) |
| Dec 31, 2021 | 14.31% | = | 100 | × | 2,023,300) | ÷ | 14,136,400) |
| Dec 31, 2020 | 12.31% | = | 100 | × | 1,532,800) | ÷ | 12,454,700) |
| Dec 31, 2019 | 12.16% | = | 100 | × | 2,017,600) | ÷ | 16,598,900) |
| Dec 31, 2018 | 12.24% | = | 100 | × | 1,917,400) | ÷ | 15,668,200) |
| Dec 31, 2017 | 11.73% | = | 100 | × | 1,665,300) | ÷ | 14,197,600) |
| Dec 31, 2016 | 11.64% | = | 100 | × | 1,573,100) | ÷ | 13,508,900) |
| Dec 31, 2015 | 10.96% | = | 100 | × | 1,458,000) | ÷ | 13,300,700) |
| Dec 31, 2014 | 10.90% | = | 100 | × | 1,404,700) | ÷ | 12,891,400) |
| Dec 31, 2013 | 8.95% | = | 100 | × | 1,105,000) | ÷ | 12,350,500) |
| Dec 31, 2012 | 10.72% | = | 100 | × | 1,505,200) | ÷ | 14,034,900) |
| Dec 31, 2011 | 5.82% | = | 100 | × | 860,300) | ÷ | 14,782,000) |
| Dec 31, 2010 | 8.86% | = | 100 | × | 1,247,500) | ÷ | 14,079,100) |
| Dec 31, 2009 | 6.38% | = | 100 | × | 841,600) | ÷ | 13,195,300) |
| Dec 31, 2008 | -19.46% | = | 100 | × | (2,573,800) | ÷ | 13,227,400) |
| Dec 31, 2007 | 12.07% | = | 100 | × | 1,057,800) | ÷ | 8,763,100) |
| Dec 31, 2006 | 12.63% | = | 100 | × | 1,440,800) | ÷ | 11,409,300) |
| Dec 31, 2005 | 12.91% | = | 100 | × | 1,361,800) | ÷ | 10,546,900) |
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), 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
The operating profit margin exhibits a long-term trajectory characterized by a severe volatility event followed by a sustained period of recovery and margin expansion. While the period began with stable margins, the subsequent two decades demonstrate a transition from recovery to operational optimization, culminating in the highest profitability levels recorded in the analyzed timeframe.
- Period of Acute Volatility (2005–2011)
- Operating margins remained relatively stable between 12.07% and 12.91% from 2005 to 2007. This stability was interrupted in 2008 by a significant collapse, where the margin fell to -19.46%, reflecting a substantial operating loss of approximately 2.57 billion USD despite an increase in net revenues. The subsequent years marked a volatile recovery phase, with margins fluctuating between 5.82% and 8.86% as the organization worked to restore operational profitability.
- Stabilization and Gradual Growth (2012–2019)
- A period of steady improvement is observed starting in 2012, as the operating profit margin returned to double digits at 10.72%. Between 2012 and 2019, margins generally trended upward, moving from approximately 9% to 12.16%. This growth coincided with a general increase in net revenues, which grew from 12.35 billion USD in 2013 to a peak of 16.60 billion USD in 2019, indicating an improvement in the efficiency of converting sales into operating profit.
- Recent Margin Expansion and Resilience (2020–2022)
- The most recent period is characterized by significant margin expansion despite revenue fluctuations. In 2020, net revenues experienced a sharp decline to 12.45 billion USD; however, the operating profit margin remained resilient, increasing slightly to 12.31%. This suggests effective cost management or a shift toward higher-margin revenue streams during that period. The upward trend accelerated through 2021 and 2022, with the operating profit margin reaching 14.31% and 15.13%, respectively, marking a peak in operational efficiency for the entire 17-year period.
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Comparison to Competitors
Trane Technologies plc, operating profit margin, long-term trends, comparison to competitors
| Trane Technologies plc | Boeing Co. | Caterpillar Inc. | Lockheed Martin Corp. | RTX Corp. | |
|---|---|---|---|---|---|
| Dec 31, 2022 | 15.13% | -5.33% | 13.97% | 12.65% | 8.07% |
| Dec 31, 2021 | 14.31% | -4.66% | 14.27% | 13.61% | 7.70% |
| Dec 31, 2020 | 12.31% | -21.95% | 11.67% | 13.22% | -3.34% |
| Dec 31, 2019 | 12.16% | -2.58% | 16.33% | 14.29% | 11.64% |
| Dec 31, 2018 | 12.24% | 11.85% | 16.00% | 13.64% | 12.86% |
| Dec 31, 2017 | 11.73% | 11.01% | 10.32% | 11.60% | 14.49% |
| Dec 31, 2016 | 11.64% | 6.17% | 1.39% | 11.74% | 14.28% |
| Dec 31, 2015 | 10.96% | 7.74% | 7.38% | 11.78% | 13.00% |
| Dec 31, 2014 | 10.90% | 8.23% | 10.22% | 12.26% | 15.01% |
| Dec 31, 2013 | 8.95% | 7.58% | 10.68% | 9.93% | 14.70% |
| Dec 31, 2012 | 10.72% | 7.72% | 13.59% | 9.40% | 13.32% |
| Dec 31, 2011 | 5.82% | 8.50% | 12.46% | 8.56% | 13.92% |
| Dec 31, 2010 | 8.86% | 7.73% | 9.94% | 8.94% | 13.23% |
| Dec 31, 2009 | 6.38% | 3.07% | 1.95% | 9.88% | 12.33% |
| Dec 31, 2008 | -19.46% | 6.49% | 9.26% | 12.01% | 13.14% |
| Dec 31, 2007 | 12.07% | 8.78% | 11.73% | 10.81% | 13.08% |
| Dec 31, 2006 | 12.63% | 4.90% | 12.66% | 9.98% | 12.94% |
| Dec 31, 2005 | 12.91% | 5.13% | 11.13% | 8.02% | 12.26% |
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).