Trane Technologies plc — Earnings Quality Grade F
TT · Industrials
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 55 days, change -1 days YoY
AR growth 4.7% vs revenue growth 7.5%
Revenue 7.5%, CFFO 1.6%. Cash follows revenue
Expense Quality
Inventory 6.7% vs COGS 6.7%. Normal
CapEx growth 3.3% vs revenue 7.5%. Normal
SG&A/Gross Profit = 48.5%. Normal
Gross margin 36.2%, change +0.5pp. Stable
Cash Flow Quality
CFFO/NI = 1.09. Profits backed by cash
FCF $2.8B, FCF/NI = 0.96
Accruals ratio = -1.3%. Low accruals
Cash $1.8B covers only 38% of debt $4.6B
Balance Sheet Health
Goodwill+Intangibles $9.7B = 113% of equity. Over 50%
Debt/EBITDA = 1.1x. Healthy
Other assets 19.6% vs revenue 7.5%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -2.47 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10