Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Current Ratio since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Long-term Activity Ratios (Summary)
Trane Technologies plc, long-term (investment) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio shows fluctuating values beginning from 9.05 in March 2019, with a general upward trend observable towards mid-2020, peaking at 11.81 in June 2020. Following this peak, the ratio experienced a gradual decline, stabilizing around the 10.2 to 10.4 range from late 2020 through March 2023. This pattern suggests an initial improvement in the efficiency with which net fixed assets are used to generate revenue, followed by a period of stabilization at a moderately high turnover level.
- Total Asset Turnover
- The total asset turnover ratio exhibits a decline from 0.87 in March 2019 to its lowest point of 0.69 in December 2020. After this trough, the ratio shows a steady recovery trend, increasing to 0.91 by March 2023. This indicates that overall asset efficiency decreased significantly during 2019 to late 2020, potentially reflecting operational challenges or increased asset base without commensurate revenue growth. The subsequent recovery suggests improved utilization of total assets in revenue generation over the last two years.
- Equity Turnover
- The equity turnover ratio displays some variability with initial values around 2.23 in March 2019, rising to 2.71 in June 2020, indicating a period of enhanced efficiency in using shareholder equity to produce sales. However, a noticeable decline followed reaching a low of 1.94 by December 2020. From that point onward, there was a consistent upward trajectory, reaching approximately 2.7 by March 2023. This pattern illustrates a temporary reduction in equity efficiency during the 2020 period, with a recovery phase demonstrating increased effectiveness in generating revenues from equity capital.
Net Fixed Asset Turnover
Trane Technologies plc, net fixed asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Property, plant and equipment, net | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Net fixed asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Net fixed asset turnover
= (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
÷ Property, plant and equipment, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Revenues Trend
- Net revenues exhibited fluctuations over the observed periods. Initially, there was a general increase from March 2018 to June 2018, peaking in the second quarter of 2018 at approximately 4,357,700 thousand US dollars. A decline followed towards the first quarter of 2019, bottoming around 3,575,900 thousand US dollars. Revenues rebounded in the mid to late 2019 period, reaching around 4,150,900 thousand US dollars by December 2019. The onset of 2020 saw a sharp decline in revenues, notably in the first quarter at 2,641,300 thousand US dollars, likely impacted by external economic factors. Recovery commenced in the second half of 2020 and continued into 2021, with revenues reaching near pre-decline levels but showing some volatility. Throughout 2022, revenues again experienced growth, peaking at approximately 4,371,900 thousand US dollars in the third quarter. The first quarter of 2023 recorded a decrease to 3,665,800 thousand US dollars, indicating variability in the latest period.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment showed a gradual long-term upward trend. Beginning at 1,611,300 thousand US dollars in March 2018, the figure increased steadily until December 2019, peaking at approximately 1,806,200 thousand US dollars. During the 2020 period, a slight reduction occurred, with values falling to approximately 1,314,100 thousand US dollars in September 2020. From late 2020 onwards, a consistent increment resumed, reaching the highest level recorded in March 2023 at approximately 1,582,300 thousand US dollars. This trend indicates ongoing investment or asset retention despite short-term contractions in fixed assets in 2020.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, available only from September 2018 onward, remained relatively stable throughout the reporting periods with some minor fluctuations. Initial ratios hovered around 9.05 to 9.19 for the periods between September 2018 and December 2019, reflecting efficient utilization of net fixed assets in generating revenues. A noticeable increase occurred in 2020, with ratios peaking at 11.81 in the first quarter, likely reflecting the drop in asset values combined with recovery in revenues. Subsequently, the ratio stabilized around 9.23 to 10.41 across 2021 and 2022, indicating consistent operational efficiency in asset use. The most recent quarter showed a ratio of 10.30, suggesting sustained asset productivity.
- Summary of Patterns and Insights
- The financial data indicates that net revenues are subject to external market conditions, demonstrated by significant declines and recoveries during the 2020 period, consistent with global economic disruptions. Property, plant, and equipment values reveal steady investment and asset retention, albeit with a temporary decline in 2020, possibly due to asset revaluation or disposals. The fixed asset turnover ratio stability suggests effective management of asset utilization, maintaining revenue generation capacity relative to asset base changes. Overall, the company appears to balance asset management with fluctuating revenue streams, showing resilience and the potential for recovery following adverse periods.
Total Asset Turnover
Trane Technologies plc, total asset turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Total asset turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Total asset turnover
= (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
÷ Total assets
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several observable trends in net revenues, total assets, and total asset turnover over the examined periods.
- Net Revenues
- Net revenues exhibit a fluctuating pattern throughout the quarters. Initially, there is an increase from approximately 3.38 billion USD in early 2018 to a peak near 4.36 billion USD by mid-2018. Following this peak, revenues generally decline towards early 2020, reaching a low point around 2.64 billion USD. Beginning mid-2020, net revenues recover and trend upward, reaching roughly 4.37 billion USD in late 2022. However, the most recent quarter shows a decline to approximately 3.67 billion USD. This pattern suggests seasonal or cyclical variations and possible external impacts affecting revenue, particularly notable during the 2020 period.
- Total Assets
- Total assets maintained relative stability, fluctuating within a range from about 17.2 billion USD to slightly above 20.6 billion USD. Initial values around 18.36 billion USD in early 2018 increased to over 20.6 billion USD by mid-2019, followed by a decline to approximately 17.2 billion USD in mid-2020. Subsequently, total assets remain fairly stable around the high 17 billion to low 18 billion USD mark through to the first quarter of 2023. This stability indicates consistent capital investment or asset base management despite fluctuations in revenues.
- Total Asset Turnover
- This metric, available from the third quarter of 2018 onward, demonstrates a generally improving trend. Starting near 0.78-0.87 ratio levels between late 2018 and early 2019, it experiences minor declines to a low of 0.69 in the first quarter of 2021. From that point onwards, asset turnover increases steadily, reaching 0.91 by the first quarter of 2023. The upward trend in total asset turnover suggests enhanced efficiency in using assets to generate revenues over time, implying operational improvements and better asset utilization.
In summary, despite fluctuations in net revenues and a largely stable asset base, the improving total asset turnover indicates the company has progressively optimized its asset use to drive revenue generation. The recovery in revenues after a sharp decline around early 2020 aligns with an increasing trend in asset efficiency. However, the decline in net revenues in the most recent quarter warrants monitoring to understand underlying causes and potential impacts on operational performance.
Equity Turnover
Trane Technologies plc, equity turnover calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Total Trane Technologies plc shareholders’ equity | ||||||||||||||||||||||||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||||||
| Equity turnover1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q1 2023 Calculation
Equity turnover
= (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
÷ Total Trane Technologies plc shareholders’ equity
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals several key trends and shifts over the observed periods.
- Net Revenues
- Net revenues demonstrate a fluctuating pattern across the quarters from 2018 to 2023. Initially, there was a general increase in revenues during 2018, peaking in the middle of that year. The revenues remained variable but relatively strong through 2019. However, a sharp decline is noticeable in early 2020, coinciding with a significant drop in the first quarter and a partial recovery during the mid and latter parts of 2020. Post-2020, revenues generally trend upward but do not reach the earlier peak levels of 2018. Notably, in 2022, revenues had a noticeable rise, especially in the middle of the year, followed by a slight decline in the first quarter of 2023.
- Total Shareholders’ Equity
- Total shareholders’ equity shows a downward trend overall from 2018 through 2023. The equity values started high in early 2018 and remained somewhat stable with minor fluctuations until the end of 2019. Beginning in 2020, there is a marked decline in equity, with the lowest points reached around mid to late 2022. A slight stabilization appears towards early 2023, but equity remains significantly lower than the 2018 levels. This declining trend may suggest challenges related to retained earnings, dividend payments, or other comprehensive loss impacts on equity.
- Equity Turnover Ratio
- The equity turnover ratio, which measures the efficiency in utilizing shareholders’ equity to generate revenues, fluctuates throughout the periods but generally shows an increasing trend over time. From the earliest measurements around 2.23 in late 2018, the ratio sees moderate variations but climbs steadily from 2021 onward, peaking above 2.7 in several quarters including the start of 2023. This increase may indicate improved efficiency in using equity to generate sales despite the declining overall equity base.
In summary, the company experienced volatility in revenues with a challenging period around 2020, followed by partial recovery. Shareholders’ equity declined significantly during the overall timeline but was accompanied by an improving equity turnover ratio, reflecting potentially enhanced operational efficiency with respect to equity usage. These contrasting trends suggest management might be optimizing asset use and sales generation in the face of equity contractions.