Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Trane Technologies's Sloan Ratio for the quarter that ended in Jun. 2026 was 0.57%.
As of Jun. 2026, Trane Technologies has a Sloan Ratio of 0.57%, indicating the company is in the safe zone and there is no funny business with accruals.
Trane Technologies (HAM:2IS) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, Trane Technologies has a Sloan Ratio of 0.57%, indicating the company is in the safe zone and there is no funny business with accruals.
Trane Technologies Sloan Ratio % Related Terms
Trane Technologies Sloan Ratio % Historical Data
* Premium members only.
The historical data trend for Trane Technologies's Sloan Ratio % 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.
HAM:2IS vs JCI, CARR, LII: Sloan Ratio % Comparison
For the Building Products & Equipment subindustry, Trane Technologies's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Construction Industry
For the Construction industry and Industrials sector, Trane Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Trane Technologies's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Trane Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Trane Technologies's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was 722.155 (Sep. 2025 ) + 504.97 (Dec. 2025 ) + 505.506 (Mar. 2026 ) + 803.508 (Jun. 2026 ) = €2,536 Mil.
Trane Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 855.408 (Sep. 2025 ) + 989.701 (Dec. 2025 ) + 541.663 (Mar. 2026 ) + 944.124 (Jun. 2026 ) = €3,331 Mil.
Trane Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -58.447 (Sep. 2025 ) + -72.932 (Dec. 2025 ) + -653.68 (Mar. 2026 ) + -127.249 (Jun. 2026 ) = €-912 Mil.
* 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.
Trane Technologies (HAM:2IS) has a Sloan Ratio % of 0.57% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Trane Technologies and its competitors.
Is Trane Technologies' Sloan Ratio % too high?
Trane Technologies' current Sloan Ratio % is 0.57%. Overall, Trane Technologies has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Trane Technologies' Sloan Ratio % compare to JCI and CARR?
Trane Technologies' Sloan Ratio % of 0.57% can be compared against companies in the Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Construction company?
A good Sloan Ratio % depends on the Construction industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Trane Technologies and its competitors. Trane Technologies's current Sloan Ratio % is 0.57%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trane Technologies stock overvalued right now?
Based on GuruFocus' analysis, Trane Technologies (HAM:2IS) is currently considered Fairly Valued. The stock's GF Value™ is €363.58, compared to a current price of €380.10 — trading 4.5% above its estimated fair value. The current Sloan Ratio % is 0.57%. Trane Technologies' overall GF Score™ is 93/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Trane Technologies (HAM:2IS), the current Sloan Ratio % is 0.57% as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Trane Technologies (HAM:2IS) Overvalued in 2026?
Based on GuruFocus' analysis, Trane Technologies stock appears to be overvalued.
The current stock price of €380.10 is trading 4.5% above its estimated GF Value™ of €363.58.
GuruFocus considers Trane Technologies to be Fairly Valued.
Key valuation signals for HAM:2IS:
Sloan Ratio %: 0.57%
GF Value™: €363.58 vs. price of €380.10 (4.5% above fair value)
No single metric tells the full story. See the HAM:2IS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 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 approximately 80% of its revenue, with 13% from EMEA and 7% Asia-Pacific. The company was formed in 2020 when its former parent, Ingersoll Rand, merged with Gardner Denver in a tax-advantaged reverse Morris trust transaction.
93GF Score
Get the complete analysis for HAM:2IS
Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HAM:2IS has been successfully added to your 
