Return on Assets (ROA)
since 2005
Calculation
Trane Technologies plc, ROA, long-term trends, calculation
| ROA | = | 100 | × | Net earnings (loss) attributable to Trane Technologies plc1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | 9.71% | = | 100 | × | 1,756,500) | ÷ | 18,081,600) |
| Dec 31, 2021 | 7.88% | = | 100 | × | 1,423,400) | ÷ | 18,059,800) |
| Dec 31, 2020 | 4.71% | = | 100 | × | 854,900) | ÷ | 18,156,700) |
| Dec 31, 2019 | 6.89% | = | 100 | × | 1,410,900) | ÷ | 20,492,300) |
| Dec 31, 2018 | 7.47% | = | 100 | × | 1,337,600) | ÷ | 17,914,900) |
| Dec 31, 2017 | 7.17% | = | 100 | × | 1,302,600) | ÷ | 18,173,300) |
| Dec 31, 2016 | 8.49% | = | 100 | × | 1,476,200) | ÷ | 17,397,400) |
| Dec 31, 2015 | 3.97% | = | 100 | × | 664,600) | ÷ | 16,738,800) |
| Dec 31, 2014 | 5.39% | = | 100 | × | 931,700) | ÷ | 17,298,500) |
| Dec 31, 2013 | 3.50% | = | 100 | × | 618,800) | ÷ | 17,658,100) |
| Dec 31, 2012 | 5.51% | = | 100 | × | 1,018,600) | ÷ | 18,492,900) |
| Dec 31, 2011 | 1.83% | = | 100 | × | 343,200) | ÷ | 18,754,200) |
| Dec 31, 2010 | 3.21% | = | 100 | × | 642,200) | ÷ | 19,990,900) |
| Dec 31, 2009 | 2.26% | = | 100 | × | 451,300) | ÷ | 19,991,000) |
| Dec 31, 2008 | -12.54% | = | 100 | × | (2,624,800) | ÷ | 20,924,500) |
| Dec 31, 2007 | 27.59% | = | 100 | × | 3,966,700) | ÷ | 14,376,200) |
| Dec 31, 2006 | 8.50% | = | 100 | × | 1,032,500) | ÷ | 12,145,900) |
| Dec 31, 2005 | 8.97% | = | 100 | × | 1,054,200) | ÷ | 11,756,400) |
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), 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 analysis of return on assets (ROA) from 2005 to 2022 reveals a cycle of extreme volatility followed by a prolonged period of recovery and improved operational efficiency. The metric experienced significant swings during the late 2000s before stabilizing into a consistent growth pattern over the most recent years.
- Critical Volatility and Crisis Impact
- A sharp peak in ROA is observed in 2007 at 27.59%, which was immediately followed by a severe contraction in 2008, where the ratio fell to -12.54%. This decline was driven by a net loss of approximately $2.62 billion and a simultaneous surge in total assets to a period high of $20.92 billion.
- Recovery and Baseline Stabilization
- Between 2009 and 2015, ROA remained suppressed, fluctuating within a range between 1.83% and 5.51%. During this recovery phase, total assets were gradually reduced from their 2008 peak, stabilizing between $16.7 billion and $18.7 billion.
- Recent Asset Efficiency Trends
- From 2016 to 2022, a trend of strengthening asset productivity is evident. ROA reached 9.71% by 2022, the highest level since the 2007 peak. This improvement is attributed to a steady increase in net earnings, which rose from $664.6 million in 2014 to $1.76 billion in 2022, while total assets remained relatively constant at approximately $18.08 billion.
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Comparison to Competitors
Trane Technologies plc, ROA, 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 | 9.71% | -3.60% | 8.18% | 7.03% | 0.12% | 7.97% | 10.84% | 3.27% |
| Dec 31, 2021 | 7.88% | -3.03% | 7.84% | 6.30% | -3.28% | 8.60% | 12.41% | 2.39% |
| Dec 31, 2020 | 4.71% | -7.80% | 3.83% | 4.43% | 2.25% | 7.40% | 13.47% | -2.17% |
| Dec 31, 2019 | 6.89% | -0.48% | 7.77% | 6.74% | -1.87% | 10.47% | 13.11% | 3.96% |
| Dec 31, 2018 | 7.47% | 8.91% | 7.83% | 6.90% | -7.23% | 11.71% | 11.24% | 3.93% |
| Dec 31, 2017 | 7.17% | 8.88% | 0.98% | 9.15% | -1.53% | 2.79% | 4.30% | 4.70% |
| Dec 31, 2016 | 8.49% | 5.44% | -0.09% | 6.32% | 2.42% | 8.88% | 11.09% | 5.64% |
| Dec 31, 2015 | 3.97% | 5.48% | 2.68% | 6.38% | -1.24% | 9.67% | 7.34% | 8.70% |
| Dec 31, 2014 | 5.39% | 5.49% | 4.36% | 5.35% | 2.35% | 9.33% | 9.75% | 6.81% |
| Dec 31, 2013 | 3.50% | 4.95% | 4.46% | 5.24% | 1.99% | 8.64% | 8.24% | 6.31% |
| Dec 31, 2012 | 5.51% | 4.39% | 6.36% | 3.39% | 1.99% | 6.99% | 7.10% | 5.74% |
| Dec 31, 2011 | 1.83% | 5.02% | 6.05% | 7.55% | 1.97% | 5.19% | 7.00% | 8.10% |
| Dec 31, 2010 | 3.21% | 4.82% | 4.22% | 5.38% | 1.55% | 5.34% | 8.34% | 7.48% |
| Dec 31, 2009 | 2.26% | 2.11% | 1.49% | 2.35% | 1.41% | 5.98% | 8.61% | 6.87% |
| Dec 31, 2008 | -12.54% | 4.97% | 5.25% | 6.35% | 2.18% | 7.87% | 9.62% | 8.30% |
| Dec 31, 2007 | 27.59% | 6.91% | 6.31% | 7.40% | 2.79% | 7.23% | 10.49% | 7.74% |
| Dec 31, 2006 | 8.50% | 4.28% | 6.95% | 8.32% | 2.99% | 6.73% | 8.96% | 7.92% |
| Dec 31, 2005 | 8.97% | 4.28% | 6.06% | 7.88% | 2.43% | 5.12% | 6.58% | 6.68% |
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, ROA, long-term trends, comparison to sector (capital goods)
| Trane Technologies plc | Capital Goods | |
|---|---|---|
| Dec 31, 2022 | 9.71% | 2.84% |
| Dec 31, 2021 | 7.88% | 1.86% |
| Dec 31, 2020 | 4.71% | 0.80% |
| Dec 31, 2019 | 6.89% | 2.72% |
| Dec 31, 2018 | 7.47% | 1.74% |
| Dec 31, 2017 | 7.17% | 1.83% |
| Dec 31, 2016 | 8.49% | 4.09% |
| Dec 31, 2015 | 3.97% | 2.17% |
| Dec 31, 2014 | 5.39% | 3.87% |
| Dec 31, 2013 | 3.50% | 3.45% |
| Dec 31, 2012 | 5.51% | 3.30% |
| Dec 31, 2011 | 1.83% | 3.30% |
| Dec 31, 2010 | 3.21% | 2.70% |
| Dec 31, 2009 | 2.26% | 2.16% |
| Dec 31, 2008 | -12.54% | 3.33% |
| Dec 31, 2007 | 27.59% | 3.89% |
| Dec 31, 2006 | 8.50% | 3.91% |
| Dec 31, 2005 | 8.97% | 3.25% |
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, ROA, long-term trends, comparison to industry (industrials)
| Trane Technologies plc | Industrials | |
|---|---|---|
| Dec 31, 2022 | 9.71% | 3.31% |
| Dec 31, 2021 | 7.88% | 3.40% |
| Dec 31, 2020 | 4.71% | 0.04% |
| Dec 31, 2019 | 6.89% | 2.56% |
| Dec 31, 2018 | 7.47% | 3.16% |
| Dec 31, 2017 | 7.17% | 3.59% |
| Dec 31, 2016 | 8.49% | 4.55% |
| Dec 31, 2015 | 3.97% | 3.52% |
| Dec 31, 2014 | 5.39% | 4.31% |
| Dec 31, 2013 | 3.50% | 3.91% |
| Dec 31, 2012 | 5.51% | 3.38% |
| Dec 31, 2011 | 1.83% | 3.69% |
| Dec 31, 2010 | 3.21% | 3.03% |
| Dec 31, 2009 | 2.26% | 2.24% |
| Dec 31, 2008 | -12.54% | 3.10% |
| Dec 31, 2007 | 27.59% | 3.87% |
| Dec 31, 2006 | 8.50% | 6.41% |
| Dec 31, 2005 | 8.97% | 1.42% |
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).