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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- Income Statement
- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited a generally stable to slightly increasing trend over the observation period. Starting at 9.12 in March 2019, the ratio fluctuated mildly but peaked sharply at 11.81 in March 2020. Following this peak, it declined steadily throughout 2020 to a low of 9.23 in December 2020. From 2021 onward, the ratio stabilized around the 10 to 10.8 range, showing a modest upward trajectory with minor fluctuations, reaching 10.3 by March 2023. This pattern suggests a temporary increase in efficiency at the beginning of 2020, followed by a normalization and incremental improvement in the utilization of net fixed assets.
- Total Asset Turnover
- Total asset turnover demonstrated moderate volatility throughout the examined quarters. Beginning at 0.8 in the first quarter of 2019, it maintained a relatively steady level near 0.8 until March 2020, when it rose to 0.89. Subsequently, the ratio declined through the rest of 2020 to a low of 0.69 by December 2020. From 2021, the ratio exhibited a consistent recovery trend, gradually increasing each quarter from 0.72 to a high of 0.91 by March 2023. This recovery and growth following the 2020 downturn indicate an improving ability to generate revenue from total assets, suggesting enhanced operational efficiency or better asset management in the post-2020 period.
- Equity Turnover
- Equity turnover started at 2.3 in March 2019 and showed a rising trend through the first quarter of 2020, reaching 2.71. However, the ratio declined in the latter part of 2020, hitting a low of 1.94 in December 2020. Following this dip, equity turnover increased steadily in 2021 and throughout 2022, peaking at 2.7 in March 2023. The trajectory indicates periods of fluctuating returns relative to equity, with a marked decline during the 2020 year-end likely linked to broader economic conditions, followed by a steady recovery and improved utilization of shareholders' equity in subsequent years.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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.
The financial data reveals several notable trends in the quarterly performance of the company.
- Net Revenues
- Net revenues show a pattern of volatility over the observed period. Initially, revenues rose from approximately 3.58 billion to a peak of 4.53 billion within 2019, followed by a sharp decline in the first half of 2020, reaching a low around 2.64 billion. Subsequently, revenues recovered somewhat during the latter part of 2020 and throughout 2021, maintaining a general upward trend peaking near 4.37 billion in Q3 2022 before tapering off again to about 3.67 billion by Q1 2023. This fluctuation reflects an evident disruption in early 2020 with a gradual recovery thereafter, though revenues did not return to earlier peak levels consistently.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment declined significantly at the onset of 2020, dropping from around 1.81 billion in late 2019 to roughly 1.32 billion by Q2 2020. Following this decrease, it exhibited a slow but steady increase over subsequent quarters, reaching approximately 1.58 billion by Q1 2023. This suggests a reduction of fixed asset base during 2020, potentially due to asset disposals or write-downs, followed by reinvestment or acquisitions contributing to asset growth.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio demonstrates an initial decrease from about 9.12 to 8.93 in early 2019 before rising sharply to a peak of 11.81 in Q1 2020. This spike coincides with the reduced asset base observed during the same period and lower revenues, indicating higher efficiency in asset utilization despite the disruption. Afterwards, the ratio stabilizes mostly in the range of 9.2 to 10.8, showing consistent asset turnover efficiency, with minor fluctuations but no long-term declining trend as of Q1 2023.
Overall, the company experienced a significant disruption affecting revenues and fixed assets in early 2020, aligned with external macroeconomic factors during that period. Post-disruption, the recovery is apparent in both revenues and asset base with improved asset turnover efficiency maintained throughout subsequent quarters. The financial indicators suggest resiliency and effective asset management in navigating the challenging period and return towards a more stable operational performance.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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.
- Net Revenues
- Net revenues exhibited fluctuations throughout the periods under review. The figure started at approximately 3.58 billion USD in the first quarter of 2019 and rose to a peak near 4.53 billion USD by the second quarter of 2019. Subsequently, revenues showed a downward trend in late 2019 and through 2020, with a notable decline to about 2.64 billion USD in the first quarter of 2020, likely reflecting external economic impacts. However, from mid-2020 onwards, net revenues gradually recovered, reaching approximately 4.37 billion USD by the third quarter of 2022 before slightly declining in the final quarters of 2022 and the first quarter of 2023 to around 3.67 billion USD.
- Total Assets
- Total assets demonstrated a general decline starting from roughly 19.78 billion USD in the early 2019 period to around 17.64 billion USD by the first quarter of 2020. After this reduction, asset levels stabilized and showed minor fluctuations, maintaining a range between 17.6 billion and 18.1 billion USD from 2020 through to early 2023. This suggests a conservative or stable asset management approach following the asset drop observed in early 2020.
- Total Asset Turnover
- The total asset turnover ratio initially hovered near 0.8 in early 2019, indicating steady efficiency in generating revenues from assets. A rise in this ratio occurred at the beginning of 2020, peaking close to 0.89, despite the reduced net revenues and lower asset base. Following this peak, the ratio declined to approximately 0.69 by the end of 2020, suggesting less efficient utilization of assets during that period. From 2021 onwards, asset turnover steadily improved, reaching a high of about 0.91 by the first quarter of 2023, reflecting increasingly effective asset use to drive revenues over time.
- Overall Insights
- The data reflects responsiveness to economic and market conditions, with a significant downturn in net revenues and total assets around the onset of 2020. Since then, there has been a recovery in revenues and asset turnover efficiency, accompanied by a stable asset base. This indicates attempts to optimize asset use and regain revenue growth momentum post-decline. The improvement in total asset turnover ratio is particularly notable as it suggests enhanced operational efficiency. Maintaining or further improving this ratio could be a key focus for sustaining growth while managing asset levels prudently.
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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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).
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 data reveals several notable trends over the observed periods. Net revenues exhibit significant fluctuations, with a sharp decline starting in the first quarter of 2020, followed by a gradual recovery and growth peaking around mid-2022, and a slight decline approaching early 2023. This pattern likely indicates the impact of external factors affecting demand and operational capacity, with rebounds suggesting adaptive responses or market recovery.
Total shareholders’ equity shows a contrasting trend, with a gradual increase from early 2019 up to the end of 2019, followed by a pronounced decrease throughout 2020. After this drop, equity stabilizes and demonstrates modest growth from 2021 through early 2023, albeit not reaching pre-2020 peak levels. This suggests that the company experienced financial pressures reducing equity, possibly from market conditions or operational losses, then took measures to restore or maintain capital strength over subsequent quarters.
Equity turnover, an indicator of how effectively the company utilizes its equity to generate revenue, reflects variability linked to the shifts in revenue and equity levels. Starting near 2.3 in early 2019, the ratio increases notably in the first quarter of 2020, corresponding with the revenue drop and equity decline, indicating revenue was relatively high versus equity at that point. Subsequently, equity turnover decreases in late 2020, reaching a low near 1.94, potentially signaling less efficient equity use during periods of recovery. From 2021 onward, the ratio improves steadily, peaking near 2.7 by early 2023, which suggests enhanced efficiency in leveraging equity to produce revenues as the company recovers and stabilizes.
- Net Revenues
- Experienced a major dip commencing early 2020 with the lowest values observed in the first quarter of that year, followed by progressive increases culminating in mid-2022, then a mild decline in early 2023.
- Total Shareholders’ Equity
- Rose gradually through 2019, dropped significantly in 2020, and since then has shown slow recovery but remains below preceding high levels.
- Equity Turnover Ratio
- Increased sharply in early 2020 due to simultaneous revenue decrease and equity reduction, declined later that year, then steadily improved from 2021 through early 2023, indicating growing operational efficiency relative to equity.
Overall, the company's financial profile during these quarters reflects a period of stress during 2020, likely related to external disruptions, with subsequent recovery efforts manifested through improved revenue generation and equity management efficiency. The concurrent trends suggest ongoing challenges in restoring equity to previous highs, but positive momentum in leveraging available capital to drive revenues.