Inventory Disclosure
Adjustment to Inventory: Conversion from LIFO to FIFO
Adjusted Financial Ratios: LIFO vs. FIFO (Summary)
Adjusted Current Ratio
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Trane Technologies plc, balance sheet: inventory

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Raw materials	509,600)	404,600)	305,000)	613,100)	550,500)
Work-in-process	333,800)	215,900)	163,900)	209,200)	182,000)
Finished goods	1,280,300)	982,900)	761,400)	975,500)	1,028,800)
Inventories stated at FIFO	2,123,700)	1,603,400)	1,230,300)	1,797,800)	1,761,300)
LIFO reserve	(129,900)	(72,600)	(41,100)	(85,600)	(83,500)
Inventories	1,993,800)	1,530,800)	1,189,200)	1,712,200)	1,677,800)

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).

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Item	Description	The company
Inventories	Amount after valuation and LIFO reserves of inventory expected to be sold, or consumed within one year or operating cycle, if longer.	Trane Technologies plc inventories increased from 2020 to 2021 and from 2021 to 2022.

Adjusting LIFO Inventory to FIFO (Current) Cost

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Adjustment to Inventories
Inventories at LIFO (as reported)	1,993,800)	1,530,800)	1,189,200)	1,712,200)	1,677,800)
Add: Inventory LIFO reserve	129,900)	72,600)	41,100)	85,600)	83,500)
Inventories at FIFO (adjusted)	2,123,700)	1,603,400)	1,230,300)	1,797,800)	1,761,300)
Adjustment to Current Assets
Current assets (as reported)	6,379,200)	6,470,900)	6,905,600)	6,217,200)	5,732,000)
Add: Inventory LIFO reserve	129,900)	72,600)	41,100)	85,600)	83,500)
Current assets (adjusted)	6,509,100)	6,543,500)	6,946,700)	6,302,800)	5,815,500)
Adjustment to Total Assets
Total assets (as reported)	18,081,600)	18,059,800)	18,156,700)	20,492,300)	17,914,900)
Add: Inventory LIFO reserve	129,900)	72,600)	41,100)	85,600)	83,500)
Total assets (adjusted)	18,211,500)	18,132,400)	18,197,800)	20,577,900)	17,998,400)
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)
Add: Inventory LIFO reserve	129,900)	72,600)	41,100)	85,600)	83,500)
Total Trane Technologies plc shareholders’ equity (adjusted)	6,218,500)	6,328,500)	6,448,800)	7,353,200)	7,106,200)
Adjustment to Net Earnings Attributable To Trane Technologies Plc
Net earnings attributable to Trane Technologies plc (as reported)	1,756,500)	1,423,400)	854,900)	1,410,900)	1,337,600)
Add: Increase (decrease) in inventory LIFO reserve	57,300)	31,500)	7,600)	2,100)	14,600)
Net earnings attributable to Trane Technologies plc (adjusted)	1,813,800)	1,454,900)	862,500)	1,413,000)	1,352,200)

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 inventory value on Dec 31, 2022 would be $2,123,700) (in thousands) if the FIFO inventory method was used instead of LIFO. Trane Technologies plc inventories, valued on a LIFO basis, on Dec 31, 2022 were $1,993,800). Trane Technologies plc inventories would have been $129,900) higher than reported on Dec 31, 2022 if the FIFO method had been used instead.

Trane Technologies plc, Financial Data: Reported vs. Adjusted

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Trane Technologies plc, adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Current Ratio
Reported current ratio (LIFO)	1.12	1.36	1.59	1.28	1.33
Adjusted current ratio (FIFO)	1.14	1.38	1.60	1.30	1.35
Net Profit Margin
Reported net profit margin (LIFO)	10.98%	10.07%	6.86%	8.50%	8.54%
Adjusted net profit margin (FIFO)	11.34%	10.29%	6.93%	8.51%	8.63%
Total Asset Turnover
Reported total asset turnover (LIFO)	0.88	0.78	0.69	0.81	0.87
Adjusted total asset turnover (FIFO)	0.88	0.78	0.68	0.81	0.87
Financial Leverage
Reported financial leverage (LIFO)	2.97	2.89	2.83	2.82	2.55
Adjusted financial leverage (FIFO)	2.93	2.87	2.82	2.80	2.53
Return on Equity (ROE)
Reported ROE (LIFO)	28.85%	22.75%	13.34%	19.41%	19.05%
Adjusted ROE (FIFO)	29.17%	22.99%	13.37%	19.22%	19.03%
Return on Assets (ROA)
Reported ROA (LIFO)	9.71%	7.88%	4.71%	6.89%	7.47%
Adjusted ROA (FIFO)	9.96%	8.02%	4.74%	6.87%	7.51%

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 current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Trane Technologies plc adjusted current ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Trane Technologies plc adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
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 adjusted 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 adjusted 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

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Current assets	6,379,200)	6,470,900)	6,905,600)	6,217,200)	5,732,000)
Current liabilities	5,686,800)	4,752,400)	4,338,900)	4,861,900)	4,315,700)
Liquidity Ratio
Current ratio¹	1.12	1.36	1.59	1.28	1.33
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted current assets	6,509,100)	6,543,500)	6,946,700)	6,302,800)	5,815,500)
Current liabilities	5,686,800)	4,752,400)	4,338,900)	4,861,900)	4,315,700)
Liquidity Ratio
Adjusted current ratio²	1.14	1.38	1.60	1.30	1.35

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 Current ratio = Current assets ÷ Current liabilities
= 6,379,200 ÷ 5,686,800 = 1.12

² Adjusted current ratio = Adjusted current assets ÷ Current liabilities
= 6,509,100 ÷ 5,686,800 = 1.14

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by current liabilities.	Trane Technologies plc adjusted current ratio deteriorated from 2020 to 2021 and from 2021 to 2022.

	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)
Net revenues	15,991,700)	14,136,400)	12,454,700)	16,598,900)	15,668,200)
Profitability Ratio
Net profit margin¹	10.98%	10.07%	6.86%	8.50%	8.54%
Adjusted: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Trane Technologies plc	1,813,800)	1,454,900)	862,500)	1,413,000)	1,352,200)
Net revenues	15,991,700)	14,136,400)	12,454,700)	16,598,900)	15,668,200)
Profitability Ratio
Adjusted net profit margin²	11.34%	10.29%	6.93%	8.51%	8.63%

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 Net profit margin = 100 × Net earnings attributable to Trane Technologies plc ÷ Net revenues
= 100 × 1,756,500 ÷ 15,991,700 = 10.98%

² Adjusted net profit margin = 100 × Adjusted net earnings attributable to Trane Technologies plc ÷ Net revenues
= 100 × 1,813,800 ÷ 15,991,700 = 11.34%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Trane Technologies plc adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

	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: After Conversion from LIFO to FIFO
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	18,211,500)	18,132,400)	18,197,800)	20,577,900)	17,998,400)
Activity Ratio
Adjusted total asset turnover²	0.88	0.78	0.68	0.81	0.87

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 ÷ 18,211,500 = 0.88

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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.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted total assets	18,211,500)	18,132,400)	18,197,800)	20,577,900)	17,998,400)
Adjusted total Trane Technologies plc shareholders’ equity	6,218,500)	6,328,500)	6,448,800)	7,353,200)	7,106,200)
Solvency Ratio
Adjusted financial leverage²	2.93	2.87	2.82	2.80	2.53

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
= 18,211,500 ÷ 6,218,500 = 2.93

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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.

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Trane Technologies plc	1,813,800)	1,454,900)	862,500)	1,413,000)	1,352,200)
Adjusted total Trane Technologies plc shareholders’ equity	6,218,500)	6,328,500)	6,448,800)	7,353,200)	7,106,200)
Profitability Ratio
Adjusted ROE²	29.17%	22.99%	13.37%	19.22%	19.03%

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 × Adjusted net earnings attributable to Trane Technologies plc ÷ Adjusted total Trane Technologies plc shareholders’ equity
= 100 × 1,813,800 ÷ 6,218,500 = 29.17%

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

	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: After Conversion from LIFO to FIFO
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Trane Technologies plc	1,813,800)	1,454,900)	862,500)	1,413,000)	1,352,200)
Adjusted total assets	18,211,500)	18,132,400)	18,197,800)	20,577,900)	17,998,400)
Profitability Ratio
Adjusted ROA²	9.96%	8.02%	4.74%	6.87%	7.51%

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 × Adjusted net earnings attributable to Trane Technologies plc ÷ Adjusted total assets
= 100 × 1,813,800 ÷ 18,211,500 = 9.96%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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 (NYSE:TT)

Analysis of Inventory

Inventory Disclosure

Adjustment to Inventory: Conversion from LIFO to FIFO

Trane Technologies plc, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: LIFO vs. FIFO (Summary)

Trane Technologies plc, Financial Ratios: Reported vs. Adjusted

Adjusted Current Ratio

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)