Adjusted Financial Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Trane Technologies plc, adjusted financial ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Activity Ratio
Total Asset Turnover
Reported	0.88	0.78	0.69	0.81	0.87
Adjusted	0.88	0.78	0.68	0.81	0.84
Liquidity Ratio
Current Ratio
Reported	1.12	1.36	1.59	1.28	1.33
Adjusted	1.20	1.45	1.70	1.38	1.44
Solvency Ratios
Debt to Equity
Reported	0.79	0.77	0.82	0.77	0.58
Adjusted	0.71	0.71	0.76	0.72	0.57
Debt to Capital
Reported	0.44	0.44	0.45	0.43	0.37
Adjusted	0.42	0.42	0.43	0.42	0.36
Financial Leverage
Reported	2.97	2.89	2.83	2.82	2.55
Adjusted	2.45	2.45	2.43	2.43	2.30
Profitability Ratios
Net Profit Margin
Reported	10.98%	10.07%	6.86%	8.50%	8.54%
Adjusted	11.42%	10.44%	10.50%	8.39%	6.84%
Return on Equity (ROE)
Reported	28.85%	22.75%	13.34%	19.41%	19.05%
Adjusted	24.53%	19.88%	17.39%	16.40%	13.26%
Return on Assets (ROA)
Reported	9.71%	7.88%	4.71%	6.89%	7.47%
Adjusted	10.01%	8.13%	7.17%	6.76%	5.77%

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 current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Trane Technologies plc adjusted current ratio deteriorated from 2020 to 2021 and from 2021 to 2022.
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Trane Technologies plc adjusted debt-to-equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Trane Technologies plc adjusted debt-to-capital ratio improved from 2020 to 2021 but then slightly deteriorated 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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Trane Technologies plc adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total 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
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
Selected Financial Data (US$ in thousands)
Adjusted net revenues²	15,997,700)	14,143,700)	12,456,300)	16,610,800)	15,667,400)
Adjusted total assets³	18,255,200)	18,172,300)	18,237,800)	20,620,100)	18,577,019)
Activity Ratio
Adjusted total asset turnover⁴	0.88	0.78	0.68	0.81	0.84

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).

¹ 2022 Calculation
Total asset turnover = Net revenues ÷ Total assets
= 15,991,700 ÷ 18,081,600 = 0.88

² Adjusted net revenues. See details »

³ Adjusted total assets. See details »

⁴ 2022 Calculation
Adjusted total asset turnover = Adjusted net revenues ÷ Adjusted total assets
= 15,997,700 ÷ 18,255,200 = 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
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
Selected Financial Data (US$ in thousands)
Adjusted current assets²	6,552,800)	6,583,400)	6,986,700)	6,345,000)	5,848,200)
Adjusted current liabilities³	5,455,900)	4,530,400)	4,102,600)	4,597,000)	4,063,100)
Liquidity Ratio
Adjusted current ratio⁴	1.20	1.45	1.70	1.38	1.44

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).

¹ 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 6,379,200 ÷ 5,686,800 = 1.12

² Adjusted current assets. See details »

³ Adjusted current liabilities. See details »

⁴ 2022 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 6,552,800 ÷ 5,455,900 = 1.20

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted 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
Reported
Selected Financial Data (US$ in thousands)
Total debt	4,836,300)	4,842,100)	5,272,100)	5,573,400)	4,091,300)
Total Trane Technologies plc shareholders’ equity	6,088,600)	6,255,900)	6,407,700)	7,267,600)	7,022,700)
Solvency Ratio
Debt to equity¹	0.79	0.77	0.82	0.77	0.58
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	5,305,600)	5,285,400)	5,687,400)	6,139,800)	4,637,219)
Adjusted total equity³	7,446,700)	7,431,600)	7,516,100)	8,493,600)	8,083,500)
Solvency Ratio
Adjusted debt to equity⁴	0.71	0.71	0.76	0.72	0.57

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).

¹ 2022 Calculation
Debt to equity = Total debt ÷ Total Trane Technologies plc shareholders’ equity
= 4,836,300 ÷ 6,088,600 = 0.79

² Adjusted total debt. See details »

³ Adjusted total equity. See details »

⁴ 2022 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted total equity
= 5,305,600 ÷ 7,446,700 = 0.71

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Solvency ratio	Description	The company
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Trane Technologies plc adjusted debt-to-equity ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Reported
Selected Financial Data (US$ in thousands)
Total debt	4,836,300)	4,842,100)	5,272,100)	5,573,400)	4,091,300)
Total capital	10,924,900)	11,098,000)	11,679,800)	12,841,000)	11,114,000)
Solvency Ratio
Debt to capital¹	0.44	0.44	0.45	0.43	0.37
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	5,305,600)	5,285,400)	5,687,400)	6,139,800)	4,637,219)
Adjusted total capital³	12,752,300)	12,717,000)	13,203,500)	14,633,400)	12,720,719)
Solvency Ratio
Adjusted debt to capital⁴	0.42	0.42	0.43	0.42	0.36

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).

¹ 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,836,300 ÷ 10,924,900 = 0.44

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2022 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 5,305,600 ÷ 12,752,300 = 0.42

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Solvency ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Trane Technologies plc adjusted debt-to-capital ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
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
Selected Financial Data (US$ in thousands)
Adjusted total assets²	18,255,200)	18,172,300)	18,237,800)	20,620,100)	18,577,019)
Adjusted total equity³	7,446,700)	7,431,600)	7,516,100)	8,493,600)	8,083,500)
Solvency Ratio
Adjusted financial leverage⁴	2.45	2.45	2.43	2.43	2.30

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).

¹ 2022 Calculation
Financial leverage = Total assets ÷ Total Trane Technologies plc shareholders’ equity
= 18,081,600 ÷ 6,088,600 = 2.97

² Adjusted total assets. See details »

³ Adjusted total equity. See details »

⁴ 2022 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted total equity
= 18,255,200 ÷ 7,446,700 = 2.45

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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
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
Selected Financial Data (US$ in thousands)
Adjusted net earnings²	1,826,700)	1,477,100)	1,307,400)	1,393,300)	1,071,900)
Adjusted net revenues³	15,997,700)	14,143,700)	12,456,300)	16,610,800)	15,667,400)
Profitability Ratio
Adjusted net profit margin⁴	11.42%	10.44%	10.50%	8.39%	6.84%

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).

¹ 2022 Calculation
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 earnings. See details »

³ Adjusted net revenues. See details »

⁴ 2022 Calculation
Adjusted net profit margin = 100 × Adjusted net earnings ÷ Adjusted net revenues
= 100 × 1,826,700 ÷ 15,997,700 = 11.42%

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

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
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
Selected Financial Data (US$ in thousands)
Adjusted net earnings²	1,826,700)	1,477,100)	1,307,400)	1,393,300)	1,071,900)
Adjusted total equity³	7,446,700)	7,431,600)	7,516,100)	8,493,600)	8,083,500)
Profitability Ratio
Adjusted ROE⁴	24.53%	19.88%	17.39%	16.40%	13.26%

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).

¹ 2022 Calculation
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 net earnings. See details »

³ Adjusted total equity. See details »

⁴ 2022 Calculation
Adjusted ROE = 100 × Adjusted net earnings ÷ Adjusted total equity
= 100 × 1,826,700 ÷ 7,446,700 = 24.53%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total 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
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
Selected Financial Data (US$ in thousands)
Adjusted net earnings²	1,826,700)	1,477,100)	1,307,400)	1,393,300)	1,071,900)
Adjusted total assets³	18,255,200)	18,172,300)	18,237,800)	20,620,100)	18,577,019)
Profitability Ratio
Adjusted ROA⁴	10.01%	8.13%	7.17%	6.76%	5.77%

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).

¹ 2022 Calculation
ROA = 100 × Net earnings attributable to Trane Technologies plc ÷ Total assets
= 100 × 1,756,500 ÷ 18,081,600 = 9.71%

² Adjusted net earnings. See details »

³ Adjusted total assets. See details »

⁴ 2022 Calculation
Adjusted ROA = 100 × Adjusted net earnings ÷ Adjusted total assets
= 100 × 1,826,700 ÷ 18,255,200 = 10.01%

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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)

Adjusted Financial Ratios

Adjusted Financial Ratios (Summary)

Trane Technologies plc, Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)