TT (Trane Technologies) Inventory Turnover : 1.64 (As of Sep. 2024)

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What is Trane Technologies Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Trane Technologies's Cost of Goods Sold for the three months ended in Sep. 2024 was $3,467 Mil. Trane Technologies's Average Total Inventories for the quarter that ended in Sep. 2024 was $2,118 Mil. Trane Technologies's Inventory Turnover for the quarter that ended in Sep. 2024 was 1.64.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Trane Technologies's Days Inventory for the three months ended in Sep. 2024 was 55.76.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Trane Technologies's Inventory-to-Revenue for the quarter that ended in Sep. 2024 was 0.39.

Trane Technologies Inventory Turnover Historical Data

The historical data trend for Trane Technologies's Inventory Turnover 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.

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Trane Technologies Inventory Turnover Chart

Trane Technologies Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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6.15

7.01

7.11

6.26

5.70

Trane Technologies Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Inventory Turnover	Get a 7-Day Free Trial															1.42	1.36	1.22	1.47	1.64

Trane Technologies Inventory Turnover Calculation

Trane Technologies's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	11820.4	/ (	(1993.8	+	2152.1)	/	2 )
=	11820.4	/	2072.95
=	5.70

Trane Technologies's Inventory Turnover for the quarter that ended in Sep. 2024 is calculated as

	Inventory Turnover (Q: Sep. 2024 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Sep. 2024 )	/ (	(Total Inventories (Q: Jun. 2024 )	+	Total Inventories (Q: Sep. 2024 ))	/	count )
=	3466.8	/ (	(2203.5	+	2033.4)	/	2 )
=	3466.8	/	2118.45
=	1.64

Trane Technologies (NYSE:TT) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Trane Technologies's Days Inventory for the three months ended in Sep. 2024 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Sep. 2024 )	/	Cost of Goods Sold (Q: Sep. 2024 )	*	Days in Period
	=	2118.45	/	3466.8	*	365 / 4
	=	55.76

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Trane Technologies's Inventory to Revenue for the quarter that ended in Sep. 2024 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Sep. 2024 )	/	Revenue (Q: Sep. 2024 )
	=	2118.45	/	5441.2
	=	0.39

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Trane Technologies Inventory Turnover Related Terms

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Trane Technologies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Trane Technologies PLC (NYSE:TT) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

TT:Mexico 0Y2S:UK 2IS:Germany 2IS:Germany I1RP34:Brazil

Address

170/175 Lakeview Drive, Airside Business Park, Swords County, Dublin, IRL

Website

https://www.tranetechnologies.com

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 80% of its revenue.

Executives

Mairead Magner	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
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
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