undamentalytics Newsletter
Sign in

Trane Technologies key statistics and ratios

In fiscal 2025, Trane Technologies had return on equity of 36.4%, an operating margin of 18.6%, debt equal to 53.8% of equity and a current ratio of 1.25. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2009Dec 20092010Dec 20102011Dec 20112012Dec 20122013Dec 20132014Dec 20142015Dec 20152016Dec 20162017Dec 20172018Dec 20182019Dec 20192020Dec 20202021Dec 20212022Dec 20222023Dec 20232024Dec 20242025Dec 2025LTMSept 2026
Gross margin27.5%28.1%27.3%28.8%29.4%30.3%30.2%31.1%30.9%30.5%30.5%30.5%——————
Operating margin6.8%9.0%3.4%8.9%8.9%10.9%11.2%11.9%11.7%12.2%12.8%12.3%14.3%15.1%16.4%17.6%18.6%17.9%
Net margin3.5%4.6%2.7%8.5%5.0%7.2%5.0%10.9%9.2%10.8%10.8%6.9%10.1%11.0%11.4%12.9%13.7%13.6%
Free-cash-flow margin11.9%3.7%7.9%7.9%6.9%5.7%4.8%9.9%9.2%9.1%13.1%10.3%9.7%7.6%11.8%14.0%13.2%16.4%
Return on equity6.4%8.5%4.6%14.5%8.7%14.3%11.3%23.7%18.9%18.9%19.7%12.5%22.5%28.5%30.9%35.5%36.4%35.6%
Return on assets2.3%3.2%1.8%5.5%3.4%5.3%3.9%8.7%7.3%7.4%7.3%4.4%7.9%9.7%10.8%13.0%14.0%13.9%
Asset turnover0.650.700.660.640.680.740.780.790.800.680.680.640.780.890.941.001.031.03
Current ratio1.131.471.281.391.681.561.261.551.271.331.771.591.361.121.131.211.251.12
Debt to equity57.9%55.3%62.7%45.2%49.8%70.6%72.7%63.3%56.9%58.3%76.7%82.3%77.4%79.4%68.3%64.0%53.8%46.3%
Interest cover (operating income ÷ interest)2.9x4.5x1.6x4.3x4.0x6.2x6.7x7.2x7.7x6.8x6.9x6.2x8.7x10.8x12.3x14.7x17.5x19.2x
Effective tax rate13.7%22.6%24.1%6.6%22.8%24.3%43.3%16.2%5.7%18.7%17.1%23.0%18.6%17.3%19.4%19.4%19.2%—
R&D as % of revenue2.0%1.7%1.7%2.0%1.8%1.6%1.5%1.5%1.5%1.4%1.3%1.3%1.4%1.3%1.4%1.6%1.6%—
SG&A as % of revenue20.7%19.1%18.8%19.9%20.4%19.4%19.0%19.2%19.2%18.2%17.7%18.2%17.3%15.9%16.8%18.0%17.6%17.1%
Capital spending as % of revenue1.6%1.3%1.7%2.0%2.0%1.8%1.9%1.4%1.6%2.3%1.6%1.2%1.6%1.8%1.7%1.9%1.8%1.6%
Free cash flow ÷ net income344.1%80.3%293.0%93.5%137.2%79.4%96.1%90.7%100.0%84.0%121.5%150.8%95.9%69.0%103.2%108.1%96.3%121.1%
Dividends ÷ net income35.6%14.1%40.0%18.9%39.7%28.4%45.6%23.6%33.0%35.8%36.2%59.3%39.4%35.3%33.8%29.5%28.7%28.6%
Dividends and buybacks ÷ free cash flow10.4%17.6%128.8%108.4%171.8%221.7%86.6%44.7%111.1%122.8%73.5%58.8%121.7%150.2%64.8%73.5%82.5%64.8%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

5 of 6 checks passed · September 30, 2026
What it owns · $23.9bn
Short-term assets $8.7bnLonger-term assets $15.2bn
What it owes, and who funded it · $23.9bn
Short-term liabilities $7.8bnLonger-term liabilities $7.0bnShareholders' equity $9.1bn
  • Short-term assets cover short-term liabilities $8.7bn of assets due within a year against $7.8bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $8.7bn short-term assets against $7.0bn of longer-dated liabilities.
  • More cash than debt Cash or debt not separately reported. Not assessable.
  • Debt below 40% of shareholders' equity Debt is 46% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 75% to 46% over five years.
  • A year's operating cash flow covers at least 20% of debt $4.2bn of operating cash flow against $4.2bn of debt.
  • Operating profit covers interest at least five times over Operating income of $4.2bn against $217m of interest.

From Trane Technologies's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

65 /100

Moderate moat

How hard Trane Technologies's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 10 / 20

    Cash operating profit has been a median 8.3% of total assets over 10 years.

  • Pricing power 11 / 20

    Gross margin has been a median 30.3%, moving by 1.2 percentage points (standard deviation) across 10 years.

  • Durability 14 / 20

    Operating margin has been a median 14.5%; its worst year was 11.7%.

  • Cash conversion 16 / 20

    Free cash flow was positive in 10 of 10 years, at a median 11.9% of revenue.

  • Discipline 20 / 20

    The diluted share count fell 8.4% over five years; stock-based pay has been a median 0.5% of revenue.

AI disruption exposure: Medium. In this industry, AI could change how the product is made or sold, without replacing the core asset. The score above includes a 5-point deduction for that exposure (70 before it).

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

Head to head: CARR vs TTJCI vs TTBLDR vs TT

More: Building Products stocks compared, Industrials sector, rankings of US companies

Figures from Trane Technologies's SEC filings (10-K and 10-Q), retrieved October 30, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Trane Technologies.