Analysis of Reportable Segments
Trane Technologies plc operates in 3 segments: North America and Latin America (Americas); Europe, Middle East and Africa (EMEA); and Asia Pacific.
Segment Profit Margin
Trane Technologies plc, profit margin by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America and Latin America (Americas) | 18.40% | 18.33% | 17.32% | 17.32% | 16.98% |
| Europe, Middle East and Africa (EMEA) | 16.62% | 18.47% | 16.12% | 15.19% | 16.53% |
| Asia Pacific | 18.86% | 18.51% | 16.85% | 14.58% | 13.39% |
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).
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | North America and Latin America (Americas) | North America and Latin America (Americas) segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Europe, Middle East and Africa (EMEA) | Europe, Middle East and Africa (EMEA) segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. | |
| Asia Pacific | Asia Pacific segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Profit Margin: North America and Latin America (Americas)
Trane Technologies plc; North America and Latin America (Americas); segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment adjusted EBITDA | 2,326,300) | 2,008,800) | 1,677,700) | 1,742,100) | 1,565,500) |
| Net revenues | 12,640,800) | 10,957,100) | 9,685,900) | 10,059,500) | 9,219,400) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 18.40% | 18.33% | 17.32% | 17.32% | 16.98% |
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
Segment profit margin = 100 × Segment adjusted EBITDA ÷ Net revenues
= 100 × 2,326,300 ÷ 12,640,800 = 18.40%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | North America and Latin America (Americas) | North America and Latin America (Americas) segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Profit Margin: Europe, Middle East and Africa (EMEA)
Trane Technologies plc; Europe, Middle East and Africa (EMEA); segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment adjusted EBITDA | 338,100) | 359,200) | 265,700) | 267,700) | 302,700) |
| Net revenues | 2,034,500) | 1,944,900) | 1,648,100) | 1,762,600) | 1,831,100) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 16.62% | 18.47% | 16.12% | 15.19% | 16.53% |
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
Segment profit margin = 100 × Segment adjusted EBITDA ÷ Net revenues
= 100 × 338,100 ÷ 2,034,500 = 16.62%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Europe, Middle East and Africa (EMEA) | Europe, Middle East and Africa (EMEA) segment profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level. |
Segment Profit Margin: Asia Pacific
Trane Technologies plc; Asia Pacific; segment profit margin calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Segment adjusted EBITDA | 248,300) | 228,500) | 188,800) | 182,800) | 173,200) |
| Net revenues | 1,316,400) | 1,234,400) | 1,120,700) | 1,253,800) | 1,293,300) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 18.86% | 18.51% | 16.85% | 14.58% | 13.39% |
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
Segment profit margin = 100 × Segment adjusted EBITDA ÷ Net revenues
= 100 × 248,300 ÷ 1,316,400 = 18.86%
| Segment profitability ratio | Reportable segment | The company |
|---|---|---|
| Segment profit margin | Asia Pacific | Asia Pacific segment profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Capital Expenditures to Depreciation
Trane Technologies plc, capital expenditures to depreciation by reportable segment
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America and Latin America (Americas) | 0.90 | 0.65 | 0.44 | 0.69 | 0.94 |
| Europe, Middle East and Africa (EMEA) | 0.90 | 0.71 | 0.76 | 0.97 | 0.48 |
| Asia Pacific | 0.64 | 1.25 | 0.66 | 0.84 | 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).
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | North America and Latin America (Americas) | North America and Latin America (Americas) segment capital expenditures to depreciation ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Europe, Middle East and Africa (EMEA) | Europe, Middle East and Africa (EMEA) segment capital expenditures to depreciation ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. | |
| Asia Pacific | Asia Pacific segment capital expenditures to depreciation ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Segment Capital Expenditures to Depreciation: North America and Latin America (Americas)
Trane Technologies plc; North America and Latin America (Americas); segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 230,500) | 148,700) | 98,200) | 146,800) | 195,300) |
| Depreciation and amortization | 256,900) | 227,600) | 224,000) | 213,600) | 208,800) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.90 | 0.65 | 0.44 | 0.69 | 0.94 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 230,500 ÷ 256,900 = 0.90
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | North America and Latin America (Americas) | North America and Latin America (Americas) segment capital expenditures to depreciation ratio improved from 2020 to 2021 and from 2021 to 2022. |
Segment Capital Expenditures to Depreciation: Europe, Middle East and Africa (EMEA)
Trane Technologies plc; Europe, Middle East and Africa (EMEA); segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 25,900) | 23,600) | 24,700) | 30,000) | 14,500) |
| Depreciation and amortization | 28,800) | 33,300) | 32,600) | 31,000) | 30,000) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.90 | 0.71 | 0.76 | 0.97 | 0.48 |
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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 25,900 ÷ 28,800 = 0.90
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Europe, Middle East and Africa (EMEA) | Europe, Middle East and Africa (EMEA) segment capital expenditures to depreciation ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Segment Capital Expenditures to Depreciation: Asia Pacific
Trane Technologies plc; Asia Pacific; segment capital expenditures to depreciation calculation
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Capital expenditures | 11,200) | 20,600) | 7,700) | 11,300) | 7,500) |
| Depreciation and amortization | 17,600) | 16,500) | 11,600) | 13,400) | 13,200) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 0.64 | 1.25 | 0.66 | 0.84 | 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
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= 11,200 ÷ 17,600 = 0.64
| Segment financial ratio | Reportable segment | The company |
|---|---|---|
| Segment capital expenditures to depreciation | Asia Pacific | Asia Pacific segment capital expenditures to depreciation ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Net revenues
Trane Technologies plc, net revenues by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America and Latin America (Americas) | 12,640,800) | 10,957,100) | 9,685,900) | 10,059,500) | 9,219,400) |
| Europe, Middle East and Africa (EMEA) | 2,034,500) | 1,944,900) | 1,648,100) | 1,762,600) | 1,831,100) |
| Asia Pacific | 1,316,400) | 1,234,400) | 1,120,700) | 1,253,800) | 1,293,300) |
| Total | 15,991,700) | 14,136,400) | 12,454,700) | 13,075,900) | 12,343,800) |
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).
Segment adjusted EBITDA
Trane Technologies plc, segment adjusted ebitda by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America and Latin America (Americas) | 2,326,300) | 2,008,800) | 1,677,700) | 1,742,100) | 1,565,500) |
| Europe, Middle East and Africa (EMEA) | 338,100) | 359,200) | 265,700) | 267,700) | 302,700) |
| Asia Pacific | 248,300) | 228,500) | 188,800) | 182,800) | 173,200) |
| Total | 2,912,700) | 2,596,500) | 2,132,200) | 2,192,600) | 2,041,400) |
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).
Depreciation and amortization
Trane Technologies plc, depreciation and amortization by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America and Latin America (Americas) | 256,900) | 227,600) | 224,000) | 213,600) | 208,800) |
| Europe, Middle East and Africa (EMEA) | 28,800) | 33,300) | 32,600) | 31,000) | 30,000) |
| Asia Pacific | 17,600) | 16,500) | 11,600) | 13,400) | 13,200) |
| Total | 303,300) | 277,400) | 268,200) | 258,000) | 252,000) |
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).
Capital expenditures
Trane Technologies plc, capital expenditures by reportable segment
US$ in thousands
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|
| North America and Latin America (Americas) | 230,500) | 148,700) | 98,200) | 146,800) | 195,300) |
| Europe, Middle East and Africa (EMEA) | 25,900) | 23,600) | 24,700) | 30,000) | 14,500) |
| Asia Pacific | 11,200) | 20,600) | 7,700) | 11,300) | 7,500) |
| Total | 267,600) | 192,900) | 130,600) | 188,100) | 217,300) |
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).