Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
- Analysis of Debt
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Profitability Ratios (Summary)
Trane Technologies plc, profitability 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).
The financial data reveals several important trends in profitability and efficiency metrics over multiple quarters from early 2019 through the first quarter of 2023.
- Gross Profit Margin
- The gross profit margin has remained relatively stable throughout the period, fluctuating slightly around the 30.5% to 31.8% range. There is a minor downward trend observed in mid-2020, coinciding with the initial pandemic period, but margins recovered and slightly improved by early 2023, reaching approximately 31.4%. This stability suggests consistent cost management relative to revenue over these quarters.
- Operating Profit Margin
- The operating profit margin exhibits a notable upward trajectory over the timeframe. Initial values in 2019 hovered around 12.5%, dipped slightly in mid-2020 to below 12%, then saw significant improvement starting in 2021. By the first quarter of 2023, operating margin had increased to over 15%. This improvement indicates enhanced operational efficiency or better control over operating expenses relative to sales.
- Net Profit Margin
- Net profit margins follow a pattern similar to operating margins but with more pronounced volatility. Margins declined sharply during early pandemic quarters, reaching below 7% mid-2020, but subsequently rebounded strongly to stabilize above 10% from 2021 onwards. The consistent increase toward 11% by early 2023 reflects stronger bottom-line profitability after costs, taxes, and other expenses.
- Return on Equity (ROE)
- ROE initially showed a modest decline during the early pandemic period, dropping from around 20.5% in early 2019 to approximately 13.3% by the end of 2020. However, a robust recovery ensued, with ROE climbing steadily through 2021 and 2022. By the first quarter of 2023, ROE reached nearly 30%, demonstrating significantly higher efficiency in generating shareholder returns relative to equity.
- Return on Assets (ROA)
- ROA trends mirrored those of ROE but at lower absolute values, reflecting asset utilization efficiency. ROA declined from approximately 7.1% in early 2019 to under 5% in late 2020, indicative of reduced asset profitability during the pandemic. Post-2020, a strong recovery phase raised ROA above 10% by early 2023, suggesting improved asset management and profitability relative to total asset base.
In summary, while gross profit margins have remained relatively stable, significant improvements in operating and net profit margins, as well as in returns on equity and assets, illustrate a positive trend in both operational efficiency and overall profitability. The temporary dips in mid-2020 correspond with external economic challenges but were followed by a strong recovery phase through 2021 to early 2023, signaling strengthening financial performance.
Return on Sales
Return on Investment
Gross Profit Margin
Trane Technologies plc, gross profit margin 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) | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, 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
Gross profit margin = 100
× (Gross profitQ1 2023
+ Gross profitQ4 2022
+ Gross profitQ3 2022
+ Gross profitQ2 2022)
÷ (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The quarterly financial data indicates several noteworthy trends in revenue and profitability over the observed periods.
- Net Revenues
- Net revenues exhibit a cyclical pattern with notable fluctuations corresponding to quarterly changes. Starting from approximately 3.58 billion in the first quarter of 2019, revenues increase to a peak near 4.53 billion by the second quarter of the same year, before experiencing a decline during the end of 2019 and into 2020. The lowest point occurs in the first quarter of 2020, with revenues falling to approximately 2.64 billion. Subsequently, revenues gradually recover through the remainder of 2020 and into 2021, reaching over 4.19 billion by the second quarter of 2022. In early 2023, a decline is observed again, with revenues dropping to around 3.67 billion in the first quarter.
- Gross Profit
- Gross profit trends generally parallel those of net revenues, reflecting the impact of revenue fluctuations on profitability. Gross profit starts at roughly 1.06 billion in the first quarter of 2019 and climbs to a maximum near 1.43 billion by the second quarter of that year. Similar to revenues, gross profit declines significantly through early 2020, bottoming at approximately 742.5 million in the first quarter of 2020. Recovery occurs subsequently, with gross profits rising steadily through 2021 and peaking at about 1.43 billion in the third quarter of 2022. The latest quarter in early 2023 shows a decrease, with gross profit at approximately 1.14 billion.
- Gross Profit Margin
- The gross profit margin remains relatively stable throughout the periods, maintaining a range mostly between 30.5% and 31.8%. Despite fluctuations in revenues and gross profit amounts, the margin percentage shows resilience, suggesting consistent cost control relative to sales. The margin dips slightly during mid-2020, coinciding with the revenue downturn, falling to around 30.54%, but then recovers and peaks at about 31.85% during the second quarter of 2021. Subsequent quarters show moderate fluctuations within a narrow band, ending at approximately 31.4% in early 2023.
In summary, the data reveals a pronounced impact on revenues and gross profit during the early 2020 period, likely indicative of external challenges affecting sales volumes or pricing. However, the gross profit margin's relative stability suggests effective management of production and operational costs despite revenue volatility. Following the 2020 trough, both revenues and gross profit experienced gradual recovery, reaching peaks in late 2021 and mid-2022, before showing a modest decline in the first quarter of 2023.
Operating Profit Margin
Trane Technologies plc, operating profit margin 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) | |||||||||||||||||||||||
| Operating income | |||||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, 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
Operating profit margin = 100
× (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial trends reveal several noteworthy developments in operating income, net revenues, and operating profit margin over the analyzed quarters.
- Operating Income
- Operating income shows a pattern of fluctuations with notable declines and rebounds across the timeline. Initially, operating income rose sharply from early 2019 to mid-2019, peaking at 650.5 million USD in June 2019, before declining towards the end of 2019 and sharply dropping in the first quarter of 2020 to 154.4 million USD. This decline aligns with the early period of 2020, likely influenced by broader market disruptions. Following this, an upward recovery phase is observed, with operating income increasing through 2020 and reaching a secondary peak of 739.5 million USD in September 2022. The last recorded quarter in March 2023 reports a decrease to 456.8 million USD, indicating some volatility but overall higher operating incomes compared to early 2020 levels.
- Net Revenues
- Net revenues present a similar cyclical behavior, initially growing from around 3.58 billion USD in March 2019 to a peak of approximately 4.53 billion USD by June 2019. A steep fall occurred in the first half of 2020, reaching about 2.64 billion USD in March 2020, reflecting a significant revenue contraction. There is a progressive recovery trend post mid-2020, with revenues gradually increasing to 4.37 billion USD by September 2022. By March 2023, net revenues decline again to approximately 3.67 billion USD, indicating some tapering after a period of growth.
- Operating Profit Margin
- The operating profit margin reveals an overall improvement trend despite periodic dips. Starting at around 12.56% in March 2019, the margin slightly declined through 2020, reaching a low of 11.39% in June 2020. Subsequently, the margin consistently improved, achieving levels above 14% through 2021 and exceeding 15% in the latter half of 2022 and early 2023. This suggests enhanced operational efficiency or a favorable cost structure relative to revenues during the later periods analyzed, despite volatility in absolute income and revenues.
In summary, the data indicates a pronounced impact in the early 2020 period with significant declines in revenue and operating income, followed by a gradual recovery and improvement in profitability margins. The upward trend in operating profit margins in the later periods implies stronger operational performance, even though the most recent quarter showed some reduction in both income and revenues, highlighting ongoing market or operational challenges.
Net Profit Margin
Trane Technologies plc, net profit margin 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 earnings (loss) attributable to Trane Technologies plc | |||||||||||||||||||||||
| Net revenues | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, 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 profit margin = 100
× (Net earnings (loss) attributable to Trane Technologies plcQ1 2023
+ Net earnings (loss) attributable to Trane Technologies plcQ4 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ3 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ2 2022)
÷ (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the analyzed periods. Net revenues exhibit a fluctuating pattern with a significant dip observed in early 2020, coinciding with global economic challenges. This decline is followed by a gradual recovery through late 2020 and into subsequent years, culminating in peak values around mid to late 2022 before showing a slight reduction in early 2023.
Net earnings attributable to the company follow a somewhat parallel trajectory, with a pronounced loss recorded in the first quarter of 2020. Following this anomaly, earnings show a robust recovery and general upward trend, reaching new highs in 2022. Although there is some variation quarter-to-quarter, overall earnings remain significantly higher post-2020 compared to previous years.
Net profit margin exhibits steady improvement throughout the entire period, starting below 9% in early 2019 and gradually increasing to approximately 11% by the first quarter of 2023. This progression suggests enhanced operational efficiency or favorable pricing strategies contributing to improved profitability.
- Net Revenues
- Initial growth through 2019 is interrupted by a sharp decline in early 2020, likely reflecting broader economic disruptions. A recovery phase ensues, with incremental increases peaking in the latter half of 2022, before demonstrating a mild contraction in early 2023.
- Net Earnings (Loss)
- The data indicates volatility with a significant loss in the first quarter of 2020. Earnings subsequently rebound strongly, generally trending upward and reaching record figures during 2022. Recent quarters show some decrease but remain well above pre-2020 levels.
- Net Profit Margin
- Profitability improves consistently, advancing from just under 9% to over 11% by early 2023. This sustained margin enhancement signals effective cost management and/or revenue quality improvements despite market challenges.
Return on Equity (ROE)
Trane Technologies plc, ROE 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 earnings (loss) attributable to Trane Technologies plc | |||||||||||||||||||||||
| Total Trane Technologies plc shareholders’ equity | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, 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
ROE = 100
× (Net earnings (loss) attributable to Trane Technologies plcQ1 2023
+ Net earnings (loss) attributable to Trane Technologies plcQ4 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ3 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ2 2022)
÷ Total Trane Technologies plc shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data reveals important trends in profitability and equity performance across multiple quarters for the company.
- Net Earnings (Loss) Attributable to the Company
-
Net earnings exhibit significant fluctuations. Early periods between 2019 and early 2020 show mostly strong positive earnings, peaking in the middle of 2019. However, the first quarter of 2020 records a loss, possibly linked to unprecedented external factors during that time. Following this, the company rebounds with positive gains throughout 2020 and into 2021.
From 2021 onwards, net earnings remain robust, with notable increases in mid-2022 and late 2022 periods, reaching some of the highest values observed in the data set. However, there is a slight decline toward the first quarter of 2023, though earnings remain positive and considerable compared to earlier years.
- Total Shareholders’ Equity
-
Shareholders' equity experiences a general declining trend over the observed period. After peaking in late 2019, equity drops sharply in early 2020, aligning temporally with the net earnings loss seen during the same timeframe. Although some recovery occurs over the following quarters, equity values do not return to their previous highs.
From late 2021 through 2023, equity oscillates but maintains a generally lower plateau relative to earlier years. This could indicate capital repayment, dividend distributions, or other equity-impacting activities during this period.
- Return on Equity (ROE)
-
The ROE metric reflects the efficiency of equity utilization. The rate starts moderately high around 20% in early 2019 but experiences a dip in mid to late 2020, correlating with lower net earnings and the drop in equity.
From 2021 onwards, ROE shows a marked upward trajectory, exceeding 25% by 2022 and further increasing toward nearly 30% by early 2023. This upward trend suggests improved profitability relative to shareholders’ equity, implying efficient capital management despite a reduction in absolute equity balances.
In summary, the company demonstrates resilience in profitability with net earnings recovering strongly after the initial setback in early 2020. While shareholders’ equity experienced a contraction post-2019, the rising ROE indicates an enhanced ability to generate returns on the equity base. These patterns reflect dynamic shifts in financial performance and capital structure over the analyzed period.
Return on Assets (ROA)
Trane Technologies plc, ROA 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 earnings (loss) attributable to Trane Technologies plc | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, 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
ROA = 100
× (Net earnings (loss) attributable to Trane Technologies plcQ1 2023
+ Net earnings (loss) attributable to Trane Technologies plcQ4 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ3 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ2 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to Trane Technologies plc
- The net earnings exhibit considerable volatility across the reported periods. Initially, earnings showed substantial growth from the first quarter of 2019 through the end of that year, peaking at 458.8 million USD in the third quarter. However, a notable loss occurred in the first quarter of 2020, coinciding with the onset of a broader economic disruption, recording a loss of 29.2 million USD. Subsequently, there was a strong recovery, with earnings gradually increasing through 2020 and into 2021, reaching a new high of 464.7 million USD in the second quarter of 2021. The earnings remained buoyant throughout 2021 and into early 2022, culminating in a peak of 547.9 million USD in the third quarter of 2022. The most recent quarter indicates a decline to 307.1 million USD, although the figure remains well above pre-pandemic lows.
- Total Assets
- Total assets demonstrate relative stability with moderate fluctuations over the examined period. Assets peaked at approximately 20.67 billion USD in mid-2019 before declining sharply in early 2020 to around 17.64 billion USD, consistent with the challenging market conditions encountered then. From this trough, the asset base showed marginal recovery and stabilization, fluctuating around the 18 billion USD mark through 2021 and into 2023. The data suggests a cautious asset management approach in response to market volatility, with no significant asset expansion or contraction in recent periods.
- Return on Assets (ROA)
- ROA trends correspond closely with the net earnings pathway, reflecting overall improvements in profitability relative to the asset base. The ratio experienced a decline from early 2019 values around 7.16% to its lowest point of 4.71% by the final quarter of 2020. This decline aligns with the net earnings downturn during the pandemic onset. Thereafter, a consistent upward trend emerges, with ROA steadily improving across 2021 and subsequent quarters, reaching a peak above 10% in early 2023. This indicates enhanced efficiency in utilizing assets to generate earnings, surpassing pre-pandemic performance levels.