Analysis of Debt
Total Debt (Carrying Amount)
Trane Technologies plc, balance sheet: debt
US$ in thousands
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).
Total debt (carrying amount) exhibited a period of expansion followed by a gradual contraction and stabilization between 2018 and 2022. The peak debt level was reached in 2019, after which a downward trend occurred, though the final 2022 balance remained elevated relative to the 2018 starting point.
- Aggregate Debt Trajectory
- Total debt increased from $4.09 billion in 2018 to a peak of $5.57 billion in 2019. From 2020 through 2022, the total carrying amount declined steadily, concluding the period at $4.84 billion.
- Long-term Debt Trends
- Long-term debt, excluding current maturities, followed a similar trajectory to total debt, peaking in 2019 at $4.92 billion. By December 31, 2022, long-term debt had decreased to $3.79 billion, effectively returning to 2018 levels of $3.74 billion.
- Short-term Obligations and Liquidity Profile
- Short-term borrowings and current maturities showed significant volatility. After fluctuating between 2018 and 2021, there was a sharp increase in 2022 to $1.05 billion. This represents the highest short-term debt obligation within the analyzed timeframe and indicates a shift in the debt maturity profile toward the short term by the end of 2022.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Total debt (fair value) | 4,600,000) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.95 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on debt: 4.41%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 4.90% | 1,048,000) | 51,352) | |
| 7.20% | 14,900) | 1,073) | |
| 3.55% | 498,700) | 17,704) | |
| 6.48% | 149,700) | 9,701) | |
| 3.50% | 398,400) | 13,944) | |
| 3.75% | 546,800) | 20,505) | |
| 3.80% | 745,800) | 28,340) | |
| 5.75% | 495,200) | 28,474) | |
| 4.65% | 296,400) | 13,783) | |
| 4.30% | 296,400) | 12,745) | |
| 4.50% | 346,000) | 15,570) | |
| Total | 4,836,300) | 213,190) | |
| 4.41% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 213,190 ÷ 4,836,300 = 4.41%