Trane Technologies Plc(Tt) Financials: Dividend Payout Ratio Compared To Industry Average, Plus Other Key Ratios
Valuation Trend (Last 5 Years)
Valuation - dividend payout ratio
This chart shows the historical trend of dividend payout ratio for TT compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Dividend Payout Ratio
Definition: The dividend payout ratio shows what portion of the company’s profits are paid out to shareholders as dividends. If it’s 60%, that means 60% goes to shareholders, while 40% is kept inside the business for future growth. High payout ratios reward shareholders today. Lower payout ratios suggest the company believes it can earn even more by reinvesting in itself.
Interpretation:
• In '2021', TT's dividend payout ratio was 0.39, demonstrating the portion of earnings distributed as dividends. Industry average for Auto Parts:O.E.M. in '2021' stood at 0.38.
• In '2022', TT's dividend payout ratio was 0.37, demonstrating the portion of earnings distributed as dividends. Industry average for Auto Parts:O.E.M. in '2022' stood at 0.72. Industry average increased by 0.34 compared to previous year.
• In '2023', TT's dividend payout ratio was 0.34, demonstrating the portion of earnings distributed as dividends. Industry average for Auto Parts:O.E.M. in '2023' stood at 0.31. Industry average declined by 0.41 from previous year.
• In '2024', TT's dividend payout ratio was 0.31, demonstrating the portion of earnings distributed as dividends. Industry average for Auto Parts:O.E.M. in '2024' stood at 0.64. Industry average increased by 0.33 compared to previous year.
Overall, TT's dividend payout ratio has consistently declined during the past 4 years.
Formula: Dividend Payout Ratio = Dividends / Net Income
Good Range: Ranges widely; 30%-60% common for mature firms.