Stock Analysis on Net
Stock Analysis on Net

Trane Technologies plc (NYSE:TT)

This company has been moved to the archive! The financial data has not been updated since May 3, 2023.

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Trane Technologies plc, balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Goodwill 5,503,700 5,504,800 5,342,800 6,783,100 5,959,500
Customer relationships 2,183,700 2,110,800 2,010,200 2,562,100 2,086,800
Patents — — — 207,600 206,600
Other 261,700 245,500 210,700 124,500 84,500
Finite-lived intangible assets, gross carrying amount 2,445,400 2,356,300 2,220,900 2,894,200 2,377,900
Accumulated amortization (1,805,500) (1,676,600) (1,561,800) (1,582,500) (1,412,700)
Finite-lived intangible assets, net carrying amount 639,900 679,700 659,100 1,311,700 965,200
Trademarks 2,624,100 2,625,900 2,627,300 2,837,100 2,669,500
Indefinite-lived intangible assets 2,624,100 2,625,900 2,627,300 2,837,100 2,669,500
Intangible assets 3,264,000 3,305,600 3,286,400 4,148,800 3,634,700
Goodwill and intangible assets 8,767,700 8,810,400 8,629,200 10,931,900 9,594,200

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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Trane Technologies plc goodwill increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.
Intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Trane Technologies plc intangible assets increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Trane Technologies plc goodwill and intangible assets increased from 2020 to 2021 but then slightly decreased from 2021 to 2022.

Adjustments to Financial Statements: Removal of Goodwill

Trane Technologies plc, adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 18,081,600 18,059,800 18,156,700 20,492,300 17,914,900
Less: Goodwill 5,503,700 5,504,800 5,342,800 6,783,100 5,959,500
Total assets (adjusted) 12,577,900 12,555,000 12,813,900 13,709,200 11,955,400
Adjustment to Total Trane Technologies Plc Shareholders’ Equity
Total Trane Technologies plc shareholders’ equity (as reported) 6,088,600 6,255,900 6,407,700 7,267,600 7,022,700
Less: Goodwill 5,503,700 5,504,800 5,342,800 6,783,100 5,959,500
Total Trane Technologies plc shareholders’ equity (adjusted) 584,900 751,100 1,064,900 484,500 1,063,200

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).

Trane Technologies plc, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Trane Technologies plc, adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Total Asset Turnover
Reported total asset turnover 0.88 0.78 0.69 0.81 0.87
Adjusted total asset turnover 1.27 1.13 0.97 1.21 1.31
Financial Leverage
Reported financial leverage 2.97 2.89 2.83 2.82 2.55
Adjusted financial leverage 21.50 16.72 12.03 28.30 11.24
Return on Equity (ROE)
Reported ROE 28.85% 22.75% 13.34% 19.41% 19.05%
Adjusted ROE 300.31% 189.51% 80.28% 291.21% 125.81%
Return on Assets (ROA)
Reported ROA 9.71% 7.88% 4.71% 6.89% 7.47%
Adjusted ROA 13.96% 11.34% 6.67% 10.29% 11.19%

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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Trane Technologies plc adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Trane Technologies plc adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Trane Technologies plc adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Trane Technologies plc adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Trane Technologies plc, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net revenues 15,991,700 14,136,400 12,454,700 16,598,900 15,668,200
Total assets 18,081,600 18,059,800 18,156,700 20,492,300 17,914,900
Activity Ratio
Total asset turnover1 0.88 0.78 0.69 0.81 0.87
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net revenues 15,991,700 14,136,400 12,454,700 16,598,900 15,668,200
Adjusted total assets 12,577,900 12,555,000 12,813,900 13,709,200 11,955,400
Activity Ratio
Adjusted total asset turnover2 1.27 1.13 0.97 1.21 1.31

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).

2022 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 15,991,700 ÷ 18,081,600 = 0.88

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 15,991,700 ÷ 12,577,900 = 1.27

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Trane Technologies plc adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets 18,081,600 18,059,800 18,156,700 20,492,300 17,914,900
Total Trane Technologies plc shareholders’ equity 6,088,600 6,255,900 6,407,700 7,267,600 7,022,700
Solvency Ratio
Financial leverage1 2.97 2.89 2.83 2.82 2.55
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 12,577,900 12,555,000 12,813,900 13,709,200 11,955,400
Adjusted total Trane Technologies plc shareholders’ equity 584,900 751,100 1,064,900 484,500 1,063,200
Solvency Ratio
Adjusted financial leverage2 21.50 16.72 12.03 28.30 11.24

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).

2022 Calculations

1 Financial leverage = Total assets ÷ Total Trane Technologies plc shareholders’ equity
= 18,081,600 ÷ 6,088,600 = 2.97

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Trane Technologies plc shareholders’ equity
= 12,577,900 ÷ 584,900 = 21.50

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Trane Technologies plc adjusted financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Trane Technologies plc 1,756,500 1,423,400 854,900 1,410,900 1,337,600
Total Trane Technologies plc shareholders’ equity 6,088,600 6,255,900 6,407,700 7,267,600 7,022,700
Profitability Ratio
ROE1 28.85% 22.75% 13.34% 19.41% 19.05%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net earnings attributable to Trane Technologies plc 1,756,500 1,423,400 854,900 1,410,900 1,337,600
Adjusted total Trane Technologies plc shareholders’ equity 584,900 751,100 1,064,900 484,500 1,063,200
Profitability Ratio
Adjusted ROE2 300.31% 189.51% 80.28% 291.21% 125.81%

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).

2022 Calculations

1 ROE = 100 × Net earnings attributable to Trane Technologies plc ÷ Total Trane Technologies plc shareholders’ equity
= 100 × 1,756,500 ÷ 6,088,600 = 28.85%

2 Adjusted ROE = 100 × Net earnings attributable to Trane Technologies plc ÷ Adjusted total Trane Technologies plc shareholders’ equity
= 100 × 1,756,500 ÷ 584,900 = 300.31%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Trane Technologies plc adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Trane Technologies plc 1,756,500 1,423,400 854,900 1,410,900 1,337,600
Total assets 18,081,600 18,059,800 18,156,700 20,492,300 17,914,900
Profitability Ratio
ROA1 9.71% 7.88% 4.71% 6.89% 7.47%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net earnings attributable to Trane Technologies plc 1,756,500 1,423,400 854,900 1,410,900 1,337,600
Adjusted total assets 12,577,900 12,555,000 12,813,900 13,709,200 11,955,400
Profitability Ratio
Adjusted ROA2 13.96% 11.34% 6.67% 10.29% 11.19%

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).

2022 Calculations

1 ROA = 100 × Net earnings attributable to Trane Technologies plc ÷ Total assets
= 100 × 1,756,500 ÷ 18,081,600 = 9.71%

2 Adjusted ROA = 100 × Net earnings attributable to Trane Technologies plc ÷ Adjusted total assets
= 100 × 1,756,500 ÷ 12,577,900 = 13.96%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Trane Technologies plc adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.