Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Net Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Analysis of Revenues
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Profitability Ratios (Summary)
Trane Technologies plc, profitability ratios (quarterly data)
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).
- Gross Profit Margin
- The gross profit margin has displayed a relatively stable trend over the analyzed period, maintaining values slightly above 30%. Starting at approximately 30.77% in early 2019, it fluctuated marginally within a narrow range and exhibited a slight upward tendency towards the end of the period, reaching around 31.4% by the first quarter of 2023. This stability indicates consistent control over production costs relative to sales revenue.
- Operating Profit Margin
- The operating profit margin showed a clear upward trajectory from the beginning of 2019 at approximately 12.24% to just over 15.26% in early 2023. Period-to-period growth was steady, with minor fluctuations but an overall positive trend. This suggests improving operational efficiency and possibly enhanced revenue management or cost control in operating expenses.
- Net Profit Margin
- The net profit margin initially hovered around the 8.5% to 8.9% range in early 2019, experienced a dip to around 6.7% in mid to late 2020, and then demonstrated a robust recovery and growth trend rising to over 11% by the first quarter of 2023. This pattern reflects temporary challenges impacting the bottom line, potentially from macroeconomic factors or extraordinary expenses, followed by a significant recovery and profitability improvement.
- Return on Equity (ROE)
- Return on equity presented some volatility but an overall positive development over time. Starting near 19% in early 2019, it declined to approximately 13.3% by the end of 2020, then progressively increased, reaching nearly 30% in the first quarter of 2023. The upward trend in ROE indicates enhanced effectiveness in generating profit from shareholders' equity, reflecting improved financial performance and possibly better leverage or capital management.
- Return on Assets (ROA)
- Return on assets showed a gradual decrease from around 7.5% in early 2019 to just below 4.7% by late 2020, followed by a steady and notable recovery to approximately 10.1% in early 2023. This recovery suggests improved asset utilization and efficiency in generating earnings from company assets, possibly due to operational improvements or asset base optimization over the period.
- Overall Trends and Insights
- The overall financial indicators reveal a period of mid-term challenges around 2020, as seen in declining net profit margin, ROE, and ROA. However, subsequent years show strong recovery and progressive improvement across all key profitability ratios. Operating margin improvements outpaced gross margin changes, indicating gains in operational efficiencies rather than cost of goods sold reductions. Return metrics indicate better capital and asset productivity. The company's financial health and profitability appear to have strengthened substantially by early 2023.
Return on Sales
Return on Investment
Gross Profit Margin
Trane Technologies plc, gross profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Gross profit | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Gross profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
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).
1 Q1 2023 Calculation
Gross profit margin = 100
× (Gross profitQ1 2023
+ Gross profitQ4 2022
+ Gross profitQ3 2022
+ Gross profitQ2 2022)
÷ (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several important trends over the examined periods. A review of gross profit, net revenues, and gross profit margin provides insight into profitability and revenue performance.
- Gross Profit
- Gross profit shows considerable fluctuations over the quarters, with a general pattern of decline during the early part of the pandemic period followed by recovery. Initially, it rose significantly from March 2018 through June 2018, peaking around the second and third quarters of 2018. After a decline starting in early 2019, gross profit dropped sharply in the first quarter of 2020. This reduction coincides with the onset of the global pandemic, reflecting challenges faced during that period.
- From mid-2020 onward, the gross profit demonstrates signs of recovery, increasing through late 2021. Nevertheless, some volatility is evident, with decreases observed in specific quarters such as the final quarter of 2021 and the first quarter of 2023. The gross profit generally remains below pre-pandemic peaks, implying ongoing operational adjustments or market conditions impacting profitability.
- Net Revenues
- Net revenues follow a broadly similar pattern to gross profit. Initially, net revenues increased substantially through 2018 and early 2019, achieving a peak near mid to late 2019. However, a marked decline occurred in the first quarter of 2020, with net revenues falling considerably, likely reflecting the economic impact of the COVID-19 pandemic.
- Following this trough, net revenues show gradual improvement through late 2021, approaching but not exceeding earlier highs. Through 2022 and into early 2023, net revenues exhibit fluctuations with occasional declines. Overall, the trend suggests partial recovery from pandemic-related setbacks, though complete normalization or growth above pre-pandemic revenue levels is not established.
- Gross Profit Margin
- The gross profit margin remains relatively stable throughout the reported periods, consistently averaging around 31%. Minor quarter-to-quarter variations appear, but no significant upward or downward trend is evident. This stability suggests that the company has maintained consistent cost controls or pricing strategies, even as absolute gross profit and net revenue values have experienced volatility.
- The gross profit margin's steadiness amidst fluctuating sales volumes indicates resilience in operational efficiency. Despite external shocks and revenue pressure, the company's ability to preserve its margin is an encouraging sign of financial discipline and adaptability in managing costs relative to sales.
In summary, the data reveals that while the company experienced notable revenue and gross profit decreases coinciding with the pandemic onset, it has since undergone a phase of recovery. However, the recovery remains uneven and below prior peak levels. The gross profit margin has been largely unaffected, reflecting steady cost management. Continued monitoring of revenue trends and efforts to sustain or improve profitability margins will be important for future financial health.
Operating Profit Margin
Trane Technologies plc, operating profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Operating income | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Operating profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
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).
1 Q1 2023 Calculation
Operating profit margin = 100
× (Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022
+ Operating incomeQ2 2022)
÷ (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's quarterly performance over the analyzed periods.
- Operating Income
- The operating income exhibits significant fluctuations across the quarters. Initially, there is a relatively moderate level in early 2018, followed by a pronounced increase reaching a peak in mid-2018. Subsequently, operating income declines towards the end of 2018 and early 2019 before experiencing another surge in mid-2019. However, a notable decline is observed during the first quarter of 2020 coinciding with broader market disruptions. Recovery attempts are evident in the latter part of 2020 into 2021, with operating income reaching elevated levels again. The trend continues with variability but generally elevated operating income figures throughout 2022, peaking notably in third quarter 2022. By the first quarter of 2023, a decrease is observed compared to the previous quarter but remains above early 2020 levels.
- Net Revenues
- Net revenues show a pattern of initial growth from early to mid-2018, peaking around the second quarter of 2018. This is followed by a moderate decline and relative stabilization towards the end of 2018 and into 2019, although still maintaining higher levels than the start of the period. A sharp drop occurs in the first quarter of 2020, reflecting significant impact likely linked to external economic factors. Partial recovery is observed throughout 2020 and into 2021, with revenues increasing but not returning to the highest levels recorded in 2018. Throughout 2022, net revenues improve again, reaching peaks in the second and third quarters, then showing a decline at the start of 2023. Overall, there is an evident cyclical nature with recovery phases following downturns.
- Operating Profit Margin
- Operating profit margins are available from the end of 2018 onwards, indicating a stable to improving profitability ratio. Margins start around 12.2% at the end of 2018 and show a gradual upward trend through 2019 and 2020 despite fluctuations in absolute operating income and revenues. From 2021 onwards, margins further increase consistently, peaking at over 15% in early 2023. This trend suggests enhanced operational efficiency or cost management over the period, resulting in improved profitability relative to revenues despite variable income and revenue figures.
In summary, the data reflects a company experiencing cyclical revenue and operating income trends with notable impacts during early 2020, followed by periods of recovery and growth in profitability margins. Despite volatility in operating income and net revenue, operating profit margin improvement indicates strengthened operational leverage or cost control measures during the later periods.
Net Profit Margin
Trane Technologies plc, net profit margin calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net earnings (loss) attributable to Trane Technologies plc | ||||||||||||||||||||||||||||
| Net revenues | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| Net profit margin1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
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).
1 Q1 2023 Calculation
Net profit margin = 100
× (Net earnings (loss) attributable to Trane Technologies plcQ1 2023
+ Net earnings (loss) attributable to Trane Technologies plcQ4 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ3 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ2 2022)
÷ (Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022
+ Net revenuesQ2 2022)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- Net Earnings (Loss) Attributable to the Company
- Net earnings demonstrate notable fluctuations over the observed periods. Initially, earnings rose significantly from 120,400 thousand USD in March 2018 to peak at 515,100 thousand USD in September 2018. Following this peak, the earnings decline through the end of 2019, even dipping into a loss of 29,200 thousand USD in March 2020. Subsequently, earnings recover strongly, reaching a level of 464,700 thousand USD in June 2021. After a minor decrease at the end of 2021, earnings appear to strengthen again, culminating in the highest quarterly earnings of 547,900 thousand USD in September 2022. The latest figure, 307,100 thousand USD in March 2023, indicates some reduction from the prior peak but remains considerably above earlier lows.
- Net Revenues
- Net revenues show a cyclical pattern with overall growth interrupted by pandemic-related impacts. Revenues increased steadily from 3,384,500 thousand USD in March 2018 to a high of 4,357,700 thousand USD in June 2018, then experienced a slight decline toward the end of 2019. The most pronounced drop occurred in the first quarters of 2020, with a low of 2,641,300 thousand USD in March 2020, likely influenced by global economic disruptions. Recovery is evident thereafter, with revenues rising organically, reaching 4,371,900 thousand USD in September 2022, reflecting a rebound above all previous quarterly revenue figures. The revenue for March 2023, at 3,665,800 thousand USD, indicates a pullback relative to the peak but still maintains levels higher than pre-pandemic lows.
- Net Profit Margin
- Net profit margin data begins to appear from the fourth quarter of 2018 and reveals a consistent upward trend over the recorded timeframe. Beginning at 8.54% in December 2018, the margin remains relatively stable around the high 6% to low 9% range through 2019 and 2020. Beginning mid-2021, margins strengthen markedly, rising to a range between 9.82% and 11.06%, peaking in March 2023. This progression signifies enhanced profitability, with improved control over costs or operational efficiency, despite fluctuating revenue and earnings levels.
- Overall Trends and Insights
- The data reflects a company experiencing cyclical earnings and revenues with significant impact during early 2020, coinciding with global economic disruptions. Revenues and earnings both declined sharply in the first quarters of 2020, followed by a resilient recovery throughout 2021 and 2022. Profitability, as measured by net profit margin, has steadily improved especially from 2021 onward, surpassing pre-pandemic levels. The overall pattern suggests effective management in navigating challenges and leveraging recovery periods to enhance profitability. However, the recent reduction in earnings and revenues in the first quarter of 2023 compared to the prior peak quarters warrants close monitoring for potential emerging challenges or seasonality effects.
Return on Equity (ROE)
Trane Technologies plc, ROE calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net earnings (loss) attributable to Trane Technologies plc | ||||||||||||||||||||||||||||
| Total Trane Technologies plc shareholders’ equity | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROE1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
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).
1 Q1 2023 Calculation
ROE = 100
× (Net earnings (loss) attributable to Trane Technologies plcQ1 2023
+ Net earnings (loss) attributable to Trane Technologies plcQ4 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ3 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ2 2022)
÷ Total Trane Technologies plc shareholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several noteworthy trends concerning profitability and equity performance.
- Net Earnings (Loss) Attributable to Trane Technologies plc
- Net earnings demonstrate fluctuations over the period, with a general upward trend from 2018 to 2023. Starting at 120,400 thousand USD in March 2018, earnings increased significantly, peaking at 547,900 thousand USD by March 2023. A marked dip occurred in March 2020, where a loss of 29,200 thousand USD was recorded, likely reflecting external challenges impacting the company. However, the company recovered in subsequent quarters, consistently reporting higher earnings thereafter.
- Total Shareholders’ Equity
- The shareholders' equity exhibited variability, starting at approximately 7,080,700 thousand USD in March 2018, dipping to a low of 5,772,600 thousand USD in March 2020, coinciding with the period of negative earnings. Post this decline, equity levels recovered gradually, peaking near 6,088,600 thousand USD by December 2022 before slightly decreasing to 6,036,100 thousand USD by March 2023. Overall, equity showed resilience with partial recovery following a mid-period contraction.
- Return on Equity (ROE)
- ROE data are available from March 2019 onwards, starting at 19.05% and showing a progressive improvement over time. Despite a dip in the early quarters of the global crisis period (mid 2020), ROE rebounded robustly, reaching nearly 30% by the first quarter of 2023. This suggests increased efficiency in generating returns from shareholders' equity, highlighting improved profitability and management effectiveness in later periods.
In summary, the data indicate that after an initial strong performance, the company faced a temporary downturn around early 2020, characterized by negative net earnings and reduced equity. Subsequently, both profitability and equity measures recovered, with ROE improving significantly, evidencing enhanced financial performance and investor value generation in the most recent quarters.
Return on Assets (ROA)
Trane Technologies plc, ROA calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||
| Net earnings (loss) attributable to Trane Technologies plc | ||||||||||||||||||||||||||||
| Total assets | ||||||||||||||||||||||||||||
| Profitability Ratio | ||||||||||||||||||||||||||||
| ROA1 | ||||||||||||||||||||||||||||
| Benchmarks | ||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||
| Boeing Co. | ||||||||||||||||||||||||||||
| Caterpillar Inc. | ||||||||||||||||||||||||||||
| Eaton Corp. plc | ||||||||||||||||||||||||||||
| GE Aerospace | ||||||||||||||||||||||||||||
| Honeywell International Inc. | ||||||||||||||||||||||||||||
| Lockheed Martin Corp. | ||||||||||||||||||||||||||||
| RTX Corp. | ||||||||||||||||||||||||||||
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).
1 Q1 2023 Calculation
ROA = 100
× (Net earnings (loss) attributable to Trane Technologies plcQ1 2023
+ Net earnings (loss) attributable to Trane Technologies plcQ4 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ3 2022
+ Net earnings (loss) attributable to Trane Technologies plcQ2 2022)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
- Net earnings attributable to Trane Technologies plc
- Net earnings exhibit notable fluctuations across the periods analyzed. Starting at 120.4 million USD in March 2018, earnings increased sharply to a peak of 515.1 million USD in September 2018, followed by a decline to 254.0 million USD by December 2018. The first half of 2019 saw a recovery with earnings rising back above 450 million USD in the second quarter but dipped in the last quarter of 2019 to 296.1 million USD. In 2020, a significant dip occurred in the first quarter with a loss of 29.2 million USD, likely indicating adverse conditions; however, subsequent quarters showed recovery with earnings rising to 400.6 million USD by September 2020 before declining again to 244.7 million USD by December 2020. Earnings rebounded strongly in 2021, with peaks exceeding 460 million USD mid-year and ending the year around 317.8 million USD. The upward trend continued into 2022 and early 2023, reaching the highest recorded earnings in this dataset at 547.9 million USD in September 2022, though a gradual decline started thereafter, ending at 307.1 million USD in March 2023.
- Total assets
- Total assets remained relatively stable but showed some variability. Beginning at approximately 18.37 billion USD in early 2018, assets rose steadily through 2019, reaching about 20.7 billion USD by mid-2019. A decline then followed throughout 2020, falling to around 17.67 billion USD by March 2020 and fluctuating slightly thereafter, ending the year around 18.15 billion USD. In 2021 and into early 2023, total assets trended slightly downwards overall, with occasional minor recoveries, stabilizing near 17.9 billion USD by March 2023.
- Return on Assets (ROA)
- ROA remained unavailable for early 2018 but data from late 2018 onward reveals a generally positive and improving trend. Initially around 7.47% in September 2018, the ratio slowly declined to a low of approximately 4.71% by December 2020. From 2021 onwards, a consistent upward trajectory is observable, accelerating from 6.28% in March 2021 to a peak of 10.08% by March 2023. This increasing ROA suggests improving efficiency in asset utilization and profitability over time, despite fluctuations in net earnings and asset base.