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TT (Trane Technologies) Piotroski F-Score : 8 (As of Oct. 31, 2024)


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What is Trane Technologies Piotroski F-Score?

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Trane Technologies has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Trane Technologies's Piotroski F-Score or its related term are showing as below:

TT' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 7   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Trane Technologies was 8. The lowest was 3. And the median was 7.


Trane Technologies Piotroski F-Score Historical Data

The historical data trend for Trane Technologies's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Trane Technologies Piotroski F-Score Chart

Trane Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.00 5.00 7.00 6.00 8.00

Trane Technologies Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 8.00 8.00 8.00 -

Competitive Comparison of Trane Technologies's Piotroski F-Score

For the Building Products & Equipment subindustry, Trane Technologies's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Trane Technologies's Piotroski F-Score Distribution in the Construction Industry

For the Construction industry and Industrials sector, Trane Technologies's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Trane Technologies's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 504.3 + 436.3 + 755.3 + 772 = $2,468 Mil.
Cash Flow from Operations was 934.8 + 247.2 + 695.9 + 1302.6 = $3,181 Mil.
Revenue was 4424.1 + 4215.5 + 5307.4 + 5441.2 = $19,388 Mil.
Gross Profit was 1471.3 + 1459.9 + 1935.5 + 1974.4 = $6,841 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(18903.2 + 19391.9 + 19341.2 + 20199.2 + 20903.7) / 5 = $19747.84 Mil.
Total Assets at the begining of this year (Sep23) was $18,903 Mil.
Long-Term Debt & Capital Lease Obligation was $4,317 Mil.
Total Current Assets was $8,100 Mil.
Total Current Liabilities was $6,629 Mil.
Net Income was 439.1 + 307.1 + 586.2 + 626.3 = $1,959 Mil.

Revenue was 4073.8 + 3665.8 + 4704.7 + 4882.9 = $17,327 Mil.
Gross Profit was 1219.5 + 1143.5 + 1584.4 + 1658.1 = $5,606 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(17739.8 + 18081.6 + 17897.4 + 18906.5 + 18903.2) / 5 = $18305.7 Mil.
Total Assets at the begining of last year (Sep22) was $17,740 Mil.
Long-Term Debt & Capital Lease Obligation was $4,476 Mil.
Total Current Assets was $6,727 Mil.
Total Current Liabilities was $5,214 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Trane Technologies's current Net Income (TTM) was 2,468. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Trane Technologies's current Cash Flow from Operations (TTM) was 3,181. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=2467.9/18903.2
=0.13055462

ROA (Last Year)=Net Income/Total Assets (Sep22)
=1958.7/17739.8
=0.11041274

Trane Technologies's return on assets of this year was 0.13055462. Trane Technologies's return on assets of last year was 0.11041274. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Trane Technologies's current Net Income (TTM) was 2,468. Trane Technologies's current Cash Flow from Operations (TTM) was 3,181. ==> 3,181 > 2,468 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=4317.1/19747.84
=0.21861125

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=4476.3/18305.7
=0.24453039

Trane Technologies's gearing of this year was 0.21861125. Trane Technologies's gearing of last year was 0.24453039. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=8099.7/6628.9
=1.22187693

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=6726.9/5214.2
=1.29011162

Trane Technologies's current ratio of this year was 1.22187693. Trane Technologies's current ratio of last year was 1.29011162. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Trane Technologies's number of shares in issue this year was 228. Trane Technologies's number of shares in issue last year was 230.6. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=6841.1/19388.2
=0.35284864

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=5605.5/17327.2
=0.3235087

Trane Technologies's gross margin of this year was 0.35284864. Trane Technologies's gross margin of last year was 0.3235087. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=19388.2/18903.2
=1.02565703

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=17327.2/17739.8
=0.97674156

Trane Technologies's asset turnover of this year was 1.02565703. Trane Technologies's asset turnover of last year was 0.97674156. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Trane Technologies has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Trane Technologies  (NYSE:TT) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Trane Technologies Piotroski F-Score Related Terms

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Trane Technologies Business Description

Address
170/175 Lakeview Drive, Airside Business Park, Swords County, Dublin, IRL
Trane Technologies manufactures and services commercial and residential HVAC systems and transportation refrigeration solutions under its prominent Trane, American Standard, and Thermo King brands. The $18 billion company generates approximately 70% of sales from equipment and 30% from parts and services. While the firm is domiciled in Ireland, North America accounts for over 70% of its revenue.
Executives
Raymond D Pittard officer: Executive Vice President 800-E BEATY STREET, DAVIDSON NC 28036
David S Regnery director, officer: Chair and CEO C/O INTERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Evan M Turtz officer: Senior Vice President C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Paul A Camuti officer: Senior Vice President 800-E BEATY STREET, DAVIDSON NC 28036
Christopher J Kuehn officer: Vice President & Controller 800-E BEATY STREET, DAVIDSON NC 28036
Mairead Magner officer: Senior Vice President 800-E BEATY STREET, DAVIDSON NC 28036
Keith A Sultana officer: Senior Vice President C/O INGERSOLL RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Mark Majocha officer: VP & Chief Accounting Officer C/O TRANE TECHNOLOGIES COMPANY LLC, 800-E BEATY STREET, DAVIDSON NC 28036
De Jesus Assis Ana Paula director C/O TRANE TECHNOLOGIES COMPANY LLC, 800-E BEATY STREET, DAVIDSON NC 28036
Linda P Hudson director
John A Hayes director C/O BALL CORP, 10 LONGS PEAK DR, BROOMFIELD CO 80021-2510
Melissa N. Schaeffer director 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Mark R George director 650 W PEACHTREE ST NW, ATLANTA GA 30308
Marcia J Avedon officer: Senior Vice President C/O INGERSOLL-RAND COMPANY, 800-E BEATY STREET, DAVIDSON NC 28036
Michael W Lamach director, officer: President and CEO C/O INGERSOLL-RAND CO, 800-E BEATY STREET, DAVIDSON NC 28036