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.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Trane Technologies plc, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Mar 31, 2023 29.88% = 10.08% × 2.97
Dec 31, 2022 28.85% = 9.71% × 2.97
Sep 30, 2022 27.91% = 9.22% × 3.03
Jun 30, 2022 26.09% = 8.44% × 3.09
Mar 31, 2022 24.15% = 8.21% × 2.94
Dec 31, 2021 22.75% = 7.88% × 2.89
Sep 30, 2021 20.85% = 7.42% × 2.81
Jun 30, 2021 20.83% = 7.32% × 2.84
Mar 31, 2021 17.78% = 6.28% × 2.83
Dec 31, 2020 13.34% = 4.71% × 2.83
Sep 30, 2020 14.24% = 5.05% × 2.82
Jun 30, 2020 16.25% = 5.60% × 2.90
Mar 31, 2020 20.47% = 6.70% × 3.06
Dec 31, 2019 19.41% = 6.89% × 2.82
Sep 30, 2019 18.91% = 6.74% × 2.81
Jun 30, 2019 19.99% = 6.90% × 2.90
Mar 31, 2019 20.58% = 7.16% × 2.87
Dec 31, 2018 19.05% = 7.47% × 2.55
Sep 30, 2018 — = — × 2.50
Jun 30, 2018 — = — × 2.71
Mar 31, 2018 — = — × 2.59

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2023 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Trane Technologies plc, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Mar 31, 2023 29.88% = 11.06% × 0.91 × 2.97
Dec 31, 2022 28.85% = 10.98% × 0.88 × 2.97
Sep 30, 2022 27.91% = 10.56% × 0.87 × 3.03
Jun 30, 2022 26.09% = 10.06% × 0.84 × 3.09
Mar 31, 2022 24.15% = 10.01% × 0.82 × 2.94
Dec 31, 2021 22.75% = 10.07% × 0.78 × 2.89
Sep 30, 2021 20.85% = 9.82% × 0.76 × 2.81
Jun 30, 2021 20.83% = 9.95% × 0.74 × 2.84
Mar 31, 2021 17.78% = 8.72% × 0.72 × 2.83
Dec 31, 2020 13.34% = 6.86% × 0.69 × 2.83
Sep 30, 2020 14.24% = 6.75% × 0.75 × 2.82
Jun 30, 2020 16.25% = 6.76% × 0.83 × 2.90
Mar 31, 2020 20.47% = 7.54% × 0.89 × 3.06
Dec 31, 2019 19.41% = 8.50% × 0.81 × 2.82
Sep 30, 2019 18.91% = 8.38% × 0.80 × 2.81
Jun 30, 2019 19.99% = 8.89% × 0.78 × 2.90
Mar 31, 2019 20.58% = 8.94% × 0.80 × 2.87
Dec 31, 2018 19.05% = 8.54% × 0.87 × 2.55
Sep 30, 2018 — = — × — × 2.50
Jun 30, 2018 — = — × — × 2.71
Mar 31, 2018 — = — × — × 2.59

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2023 is the increase in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Trane Technologies plc, decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Mar 31, 2023 29.88% = 0.82 × 0.91 × 14.82% × 0.91 × 2.97
Dec 31, 2022 28.85% = 0.82 × 0.91 × 14.73% × 0.88 × 2.97
Sep 30, 2022 27.91% = 0.82 × 0.90 × 14.38% × 0.87 × 3.03
Jun 30, 2022 26.09% = 0.81 × 0.89 × 14.01% × 0.84 × 3.09
Mar 31, 2022 24.15% = 0.81 × 0.89 × 13.98% × 0.82 × 2.94
Dec 31, 2021 22.75% = 0.81 × 0.88 × 14.08% × 0.78 × 2.89
Sep 30, 2021 20.85% = 0.80 × 0.88 × 14.04% × 0.76 × 2.81
Jun 30, 2021 20.83% = 0.80 × 0.87 × 14.22% × 0.74 × 2.84
Mar 31, 2021 17.78% = 0.79 × 0.85 × 12.94% × 0.72 × 2.83
Dec 31, 2020 13.34% = 0.74 × 0.82 × 11.24% × 0.69 × 2.83
Sep 30, 2020 14.24% = 0.75 × 0.83 × 10.84% × 0.75 × 2.82
Jun 30, 2020 16.25% = 0.75 × 0.84 × 10.78% × 0.83 × 2.90
Mar 31, 2020 20.47% = 0.77 × 0.86 × 11.48% × 0.89 × 3.06
Dec 31, 2019 19.41% = 0.80 × 0.88 × 12.09% × 0.81 × 2.82
Sep 30, 2019 18.91% = 0.77 × 0.89 × 12.23% × 0.80 × 2.81
Jun 30, 2019 19.99% = 0.83 × 0.89 × 12.01% × 0.78 × 2.90
Mar 31, 2019 20.58% = 0.83 × 0.90 × 12.02% × 0.80 × 2.87
Dec 31, 2018 19.05% = 0.83 × 0.88 × 11.74% × 0.87 × 2.55
Sep 30, 2018 — = — × — × — × — × 2.50
Jun 30, 2018 — = — × — × — × — × 2.71
Mar 31, 2018 — = — × — × — × — × 2.59

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q1 2023 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Trane Technologies plc, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Mar 31, 2023 10.08% = 11.06% × 0.91
Dec 31, 2022 9.71% = 10.98% × 0.88
Sep 30, 2022 9.22% = 10.56% × 0.87
Jun 30, 2022 8.44% = 10.06% × 0.84
Mar 31, 2022 8.21% = 10.01% × 0.82
Dec 31, 2021 7.88% = 10.07% × 0.78
Sep 30, 2021 7.42% = 9.82% × 0.76
Jun 30, 2021 7.32% = 9.95% × 0.74
Mar 31, 2021 6.28% = 8.72% × 0.72
Dec 31, 2020 4.71% = 6.86% × 0.69
Sep 30, 2020 5.05% = 6.75% × 0.75
Jun 30, 2020 5.60% = 6.76% × 0.83
Mar 31, 2020 6.70% = 7.54% × 0.89
Dec 31, 2019 6.89% = 8.50% × 0.81
Sep 30, 2019 6.74% = 8.38% × 0.80
Jun 30, 2019 6.90% = 8.89% × 0.78
Mar 31, 2019 7.16% = 8.94% × 0.80
Dec 31, 2018 7.47% = 8.54% × 0.87
Sep 30, 2018 — = — × —
Jun 30, 2018 — = — × —
Mar 31, 2018 — = — × —

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2023 is the increase in asset turnover ratio.

Four-Component Disaggregation of ROA

Trane Technologies plc, decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Mar 31, 2023 10.08% = 0.82 × 0.91 × 14.82% × 0.91
Dec 31, 2022 9.71% = 0.82 × 0.91 × 14.73% × 0.88
Sep 30, 2022 9.22% = 0.82 × 0.90 × 14.38% × 0.87
Jun 30, 2022 8.44% = 0.81 × 0.89 × 14.01% × 0.84
Mar 31, 2022 8.21% = 0.81 × 0.89 × 13.98% × 0.82
Dec 31, 2021 7.88% = 0.81 × 0.88 × 14.08% × 0.78
Sep 30, 2021 7.42% = 0.80 × 0.88 × 14.04% × 0.76
Jun 30, 2021 7.32% = 0.80 × 0.87 × 14.22% × 0.74
Mar 31, 2021 6.28% = 0.79 × 0.85 × 12.94% × 0.72
Dec 31, 2020 4.71% = 0.74 × 0.82 × 11.24% × 0.69
Sep 30, 2020 5.05% = 0.75 × 0.83 × 10.84% × 0.75
Jun 30, 2020 5.60% = 0.75 × 0.84 × 10.78% × 0.83
Mar 31, 2020 6.70% = 0.77 × 0.86 × 11.48% × 0.89
Dec 31, 2019 6.89% = 0.80 × 0.88 × 12.09% × 0.81
Sep 30, 2019 6.74% = 0.77 × 0.89 × 12.23% × 0.80
Jun 30, 2019 6.90% = 0.83 × 0.89 × 12.01% × 0.78
Mar 31, 2019 7.16% = 0.83 × 0.90 × 12.02% × 0.80
Dec 31, 2018 7.47% = 0.83 × 0.88 × 11.74% × 0.87
Sep 30, 2018 — = — × — × — × —
Jun 30, 2018 — = — × — × — × —
Mar 31, 2018 — = — × — × — × —

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q1 2023 is the increase in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Trane Technologies plc, decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Mar 31, 2023 11.06% = 0.82 × 0.91 × 14.82%
Dec 31, 2022 10.98% = 0.82 × 0.91 × 14.73%
Sep 30, 2022 10.56% = 0.82 × 0.90 × 14.38%
Jun 30, 2022 10.06% = 0.81 × 0.89 × 14.01%
Mar 31, 2022 10.01% = 0.81 × 0.89 × 13.98%
Dec 31, 2021 10.07% = 0.81 × 0.88 × 14.08%
Sep 30, 2021 9.82% = 0.80 × 0.88 × 14.04%
Jun 30, 2021 9.95% = 0.80 × 0.87 × 14.22%
Mar 31, 2021 8.72% = 0.79 × 0.85 × 12.94%
Dec 31, 2020 6.86% = 0.74 × 0.82 × 11.24%
Sep 30, 2020 6.75% = 0.75 × 0.83 × 10.84%
Jun 30, 2020 6.76% = 0.75 × 0.84 × 10.78%
Mar 31, 2020 7.54% = 0.77 × 0.86 × 11.48%
Dec 31, 2019 8.50% = 0.80 × 0.88 × 12.09%
Sep 30, 2019 8.38% = 0.77 × 0.89 × 12.23%
Jun 30, 2019 8.89% = 0.83 × 0.89 × 12.01%
Mar 31, 2019 8.94% = 0.83 × 0.90 × 12.02%
Dec 31, 2018 8.54% = 0.83 × 0.88 × 11.74%
Sep 30, 2018 — = — × — × —
Jun 30, 2018 — = — × — × —
Mar 31, 2018 — = — × — × —

Based on: 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).

The primary reason for the increase in net profit margin ratio over Q1 2023 is the increase in operating profitability measured by EBIT margin ratio.