Abstract This study revisits the issue of why tropical cyclones (TCs) develop more rapidly at lower latitudes, using ensemble axisymmetric numerical simulations and energy diagnostics based on the isentropic analysis, with the focus on the relative importance of the outflow-layer and boundary layer inertial stabilities to TC intensification and energy cycle. Results show that although lowering the outflow-layer Coriolis parameter and thus inertial stability can slightly strengthen the outflow, it does not affect the simulated TC development, whereas lowering the boundary layer Coriolis parameter largely enhances the secondary circulation and TC intensification as in the experiment with a reduced Coriolis parameter throughout the model atmosphere. This suggests that TC outflow is more likely a passive result of the convergent inflow in the boundary layer and convective updraft in the eyewall. The boundary layer inertial stability is found to control the convergent inflow in the boundary layer and depth of convection in the eyewall and thus the temperature of the energy sink in the TC heat engine, which determines the efficiency and overall mechanical output of the heat engine and thus TC intensification. It is also shown that the hypothesized isothermal and adiabatic compression legs at the downstream end of the outflow in the classical Carnot cycle are not supported in the thermodynamic cycle of the simulated TCs, implying that the hypothesized classical TC Carnot cycle is not closed. It is the theoretical maximum work of the heat engine, not the energy expenditure following the outflow downstream, that determines the mechanical work used to intensify a TC.