Stock Analysis on Net
Stock Analysis on Net

Trane Technologies plc (NYSE:TT)

$22.49

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

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Trane Technologies plc, consolidated income statement

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Products
Services
Net revenues (legacy)
Net revenues
Cost of products sold
Cost of services sold
Cost of goods sold (lagacy)
Cost of goods sold
Gross profit
Selling and administrative expenses
Operating income
Interest expense
Interest income
Foreign currency exchange loss
Other components of net periodic benefit cost
Other activity, net
Other income (expense), net
Earnings before income taxes
Provision for income taxes
Earnings from continuing operations
Discontinued operations, net of tax
Net earnings
Net earnings attributable to noncontrolling interests
Net earnings attributable to Trane Technologies plc

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).

Revenue Trends
Net revenues exhibited a decline from 2019 to 2020, decreasing from approximately 16.6 billion to 12.5 billion US dollars. Subsequent years showed a steady recovery and growth, with revenues increasing to nearly 14.1 billion in 2021 and reaching approximately 16.0 billion by 2022. The segment breakdown from 2020 onward indicates that product revenues consistently outpaced services, with products growing from 8.4 billion in 2020 to over 10.9 billion by 2022, and services rising from 4.1 billion to just above 5.0 billion in the same period.
Cost of Goods Sold (COGS)
The total cost of goods sold mirrored revenue trends, declining sharply in 2020 and then rising in the consecutive years. COGS decreased from around 11.5 billion in 2019 to 8.7 billion in 2020, before increasing to about 9.7 billion in 2021 and 11.0 billion in 2022. Specifically, the cost of products sold escalated each year from 6.1 billion in 2020 to 7.9 billion in 2022, while the cost of services sold also increased steadily from 2.5 billion to 3.1 billion during the same period.
Profitability Metrics
Gross profit declined substantially in 2020, falling to approximately 3.8 billion from over 5.1 billion the year before, consistent with revenue and COGS movements. Recovery was noted in 2021 and 2022, with gross profit rising to 4.5 billion and then to nearly 5.0 billion respectively. Operating income followed a similar pattern, decreasing to 1.5 billion in 2020 from 2.0 billion in 2019, before rebounding to over 2.4 billion in 2022. Selling and administrative expenses decreased sharply in 2020 but increased modestly thereafter, maintaining a controlled level relative to total revenues.
Financial Expenses and Other Income
Interest expenses remained relatively stable, showing a slight downward trend from 220.7 million in 2018 to 223.5 million in 2022. Interest income was relatively low but increased notably in 2022, nearly doubling compared to previous years. Foreign currency exchange losses fluctuated slightly but showed an increase in 2022 compared to prior years. Other income and expenses displayed volatility, with a notable positive spike in 2020 but turning negative again by 2022.
Earnings Performance
Earnings before income taxes experienced a decline in 2020 (approx. 1.3 billion), followed by a robust recovery to 1.8 billion in 2021 and 2.2 billion in 2022. Provision for income taxes generally increased in absolute terms, consistent with rising earnings. Earnings from continuing operations also followed the earnings before tax trajectory, declining in 2020 and recovering strongly thereafter to reach nearly 1.8 billion in 2022. Net earnings showed a similar trend, with a significant dip to 870 million in 2020 then increasing to approximately 1.8 billion by 2022. Earnings attributable to noncontrolling interests slightly decreased over the period.
Operational Insights
The data reflects a significant impact during 2020, likely due to external factors affecting revenues and profits. Despite this downturn, the company demonstrated resilience with continuous recovery through 2021 and 2022. Product sales consistently contributed more heavily to revenues than services, and gross margin recovery suggests operational improvements or favorable pricing trends. The controlled increase in selling and administrative expenses relative to revenue growth indicates efficiency in cost management post-2020.