Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Trane Technologies plc, long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Trane Technologies plc net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Trane Technologies plc net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Trane Technologies plc total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Trane Technologies plc equity turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover
Trane Technologies plc, net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | 15,991,700) | 14,136,400) | 12,454,700) | 16,598,900) | 15,668,200) | |
| Property, plant and equipment, net | 1,536,100) | 1,398,800) | 1,349,500) | 1,806,200) | 1,730,800) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 10.41 | 10.11 | 9.23 | 9.19 | 9.05 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 6.31 | 5.70 | 4.92 | 6.12 | — | |
| Caterpillar Inc. | 4.70 | 3.99 | 3.15 | 3.93 | — | |
| Eaton Corp. plc | 6.59 | 6.41 | 6.02 | 6.12 | — | |
| GE Aerospace | 5.96 | 5.47 | 1.75 | 2.02 | — | |
| Honeywell International Inc. | 6.48 | 6.18 | 5.86 | 6.89 | — | |
| Lockheed Martin Corp. | 8.27 | 8.83 | 9.07 | 9.07 | — | |
| RTX Corp. | 4.42 | 4.30 | 3.78 | 6.04 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Capital Goods | 5.79 | 5.46 | 3.55 | 4.23 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Industrials | 3.22 | 3.04 | 2.41 | 2.76 | — | |
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 fixed asset turnover = Net revenues ÷ Property, plant and equipment, net
= 15,991,700 ÷ 1,536,100 = 10.41
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Trane Technologies plc net fixed asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Trane Technologies plc, net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | 15,991,700) | 14,136,400) | 12,454,700) | 16,598,900) | 15,668,200) | |
| Property, plant and equipment, net | 1,536,100) | 1,398,800) | 1,349,500) | 1,806,200) | 1,730,800) | |
| Operating lease right-of-use assets (classified in Other noncurrent assets) | 462,500) | 436,800) | 409,000) | 560,000) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 1,998,600) | 1,835,600) | 1,758,500) | 2,366,200) | 1,730,800) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 8.00 | 7.70 | 7.08 | 7.02 | 9.05 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Boeing Co. | 5.55 | 5.04 | 4.45 | 5.59 | — | |
| Caterpillar Inc. | 4.49 | 3.79 | 3.00 | 3.75 | — | |
| Eaton Corp. plc | 5.58 | 5.60 | 5.26 | 5.44 | — | |
| GE Aerospace | 5.08 | 4.55 | 1.63 | 1.89 | — | |
| Honeywell International Inc. | 5.58 | 5.28 | 5.15 | 6.12 | — | |
| Lockheed Martin Corp. | 7.27 | 7.54 | 7.96 | 7.88 | — | |
| RTX Corp. | 3.95 | 3.80 | 3.36 | 5.02 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Capital Goods | 5.13 | 4.80 | 3.25 | 3.86 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Industrials | 2.77 | 2.62 | 2.13 | 2.57 | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Net revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 15,991,700 ÷ 1,998,600 = 8.00
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Trane Technologies plc net fixed asset turnover ratio (with operating lease, right-of-use asset) improved from 2020 to 2021 and from 2021 to 2022. |
Total Asset Turnover
Trane Technologies plc, total asset turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.88 | 0.78 | 0.69 | 0.81 | 0.87 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Boeing Co. | 0.49 | 0.45 | 0.38 | 0.57 | — | |
| Caterpillar Inc. | 0.69 | 0.58 | 0.50 | 0.65 | — | |
| Eaton Corp. plc | 0.59 | 0.58 | 0.56 | 0.65 | — | |
| GE Aerospace | 0.39 | 0.36 | 0.29 | 0.33 | — | |
| Honeywell International Inc. | 0.57 | 0.53 | 0.51 | 0.63 | — | |
| Lockheed Martin Corp. | 1.25 | 1.32 | 1.29 | 1.26 | — | |
| RTX Corp. | 0.42 | 0.40 | 0.35 | 0.55 | — | |
| Total Asset Turnover, Sector | ||||||
| Capital Goods | 0.54 | 0.50 | 0.43 | 0.54 | — | |
| Total Asset Turnover, Industry | ||||||
| Industrials | 0.66 | 0.60 | 0.51 | 0.61 | — | |
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 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Trane Technologies plc total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |
Equity Turnover
Trane Technologies plc, equity turnover calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | 15,991,700) | 14,136,400) | 12,454,700) | 16,598,900) | 15,668,200) | |
| Total Trane Technologies plc shareholders’ equity | 6,088,600) | 6,255,900) | 6,407,700) | 7,267,600) | 7,022,700) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 2.63 | 2.26 | 1.94 | 2.28 | 2.23 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Boeing Co. | — | — | — | — | — | |
| Caterpillar Inc. | 3.57 | 2.92 | 2.55 | 3.48 | — | |
| Eaton Corp. plc | 1.22 | 1.20 | 1.20 | 1.33 | — | |
| GE Aerospace | 2.02 | 1.76 | 2.05 | 3.09 | — | |
| Honeywell International Inc. | 2.12 | 1.85 | 1.86 | 1.98 | — | |
| Lockheed Martin Corp. | 7.12 | 6.12 | 10.87 | 19.13 | — | |
| RTX Corp. | 0.92 | 0.88 | 0.78 | 1.84 | — | |
| Equity Turnover, Sector | ||||||
| Capital Goods | 2.54 | 2.28 | 2.39 | 3.60 | — | |
| Equity Turnover, Industry | ||||||
| Industrials | 2.94 | 2.58 | 2.75 | 3.53 | — | |
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).
1 2022 Calculation
Equity turnover = Net revenues ÷ Total Trane Technologies plc shareholders’ equity
= 15,991,700 ÷ 6,088,600 = 2.63
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Trane Technologies plc equity turnover ratio improved from 2020 to 2021 and from 2021 to 2022. |