Trane Technologies plc cash flow to debt ratio of 69.22% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Trane Technologies plc's free cash flow has increased 1.32% from $2.77B last year to $2.81B, signaling increasing performance

Trane Technologies plc's debt to equity ratio is 0.53, which means that the company's assets are healthy financed, signaling financial stability.

Trane Technologies plc's debt has decreased relative to shareholder equity from 0.72 last year to 0.53 today, signaling strengthened financials

Trane Technologies plc has a net debt to EBITDA ratio of 0.68x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Trane Technologies plc's interest coverage ratio of 18.12 indicates that earnings with good margin can cover interest payments on company debt

Trane Technologies plc's profit margin has increased (2.58%) in the last year from 12.94% to 13.28%, signaling increasing performance

Trane Technologies plc's short-term assets of $7.86B exceed its short-term liabilities of $6.29B

Trane Technologies plc's return on assets of 12.33% is higher than the 5.00% threshold, indicating efficient asset utilization

Trane Technologies plc's return on equity of 34.49%, is higher than 15.00%, indicating good performance

Trane Technologies plc's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Trane Technologies plc had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Trane Technologies plc has positive free cash flow, indicating the company generates cash after capital expenditures

Trane Technologies plc has a free cash flow yield of 2.68%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Trane Technologies plc's yearly earnings has increased 13.66% since last year from $2.57B to $2.92B, signaling increasing performance

Trane Technologies plc's yearly revenue has increased 7.48% since last year from $19.84B to $21.32B, signaling increasing performance

ROIC 19.89% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Trane Technologies plc's 3-year revenue CAGR of 10.06% is positive, indicating growing revenue over the past 3 years

Trane Technologies plc had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Trane Technologies plc had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Trane Technologies plc is overvalued relative to its fair value price of 212.20 based on Discounted Cash Flow model

Trane Technologies plc has an earnings yield of 2.77%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Trane Technologies plc is overvalued relative to its fair value price of 118.77 based on EBITDA multiple model

Trane Technologies plc has an EV/EBITDA ratio of 25.85x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Trane Technologies plc is overvalued relative to its fair value price of 316.60 based on Earnings Fair Value model

Trane Technologies plc has a PEG-ratio over 1 which is considered overvalued

Trane Technologies plc has a price-to-book ratio of 12.31x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Trane Technologies plc has a price-to-sales ratio of 4.79x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue