Trinity Industries Inc (TRN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.06 | 3.59 | 2.56 | 2.68 | 4.70 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 8.66 | 4.52 | 2.80 | 3.34 | 2.76 |
Inventory turnover indicates how many times a company's inventory is sold and replaced over a period. Trinity Industries Inc's inventory turnover has fluctuated over the years, decreasing from 4.70 in 2020 to 2.56 in 2022 before increasing to 5.06 in 2024. A higher inventory turnover is generally preferable as it implies efficient management of inventory.
Receivables turnover measures how efficiently a company collects its accounts receivable. Trinity Industries Inc's receivables turnover data is not available for any year within the provided data range.
Payables turnover indicates how quickly a company pays its suppliers. Trinity Industries Inc's payables turnover data is not available for any year within the provided data range.
Working capital turnover shows how efficiently a company is using its working capital to generate revenue. Trinity Industries Inc's working capital turnover has been increasing over the years, from 2.76 in 2020 to 8.66 in 2024, indicating a positive trend in utilizing working capital effectively to generate sales.
Overall, while the inventory turnover of Trinity Industries Inc has shown fluctuations, the increasing trend in working capital turnover suggests improving efficiency in utilizing resources to generate revenue. However, the lack of data availability for receivables and payables turnover makes it challenging to provide a comprehensive analysis of the company's complete activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.09 | 101.69 | 142.73 | 136.04 | 77.72 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Trinity Industries Inc's activity ratios reflect the efficiency with which the company manages its working capital and operational assets.
Days of Inventory on Hand (DOH):
1. The DOH ratio indicates how many days, on average, inventory is held before being sold.
2. Trinity Industries Inc's DOH has fluctuated over the years.
3. In 2022 and 2023, the company's inventory was held for a relatively longer period (142.73 days and 101.69 days, respectively), possibly indicating slower inventory turnover.
4. However, the DOH improved in 2024 with only 72.09 days of inventory on hand, potentially suggesting better inventory management and efficiency in selling products.
Days of Sales Outstanding (DSO):
1. The DSO ratio measures how long it takes for the company to collect its accounts receivable.
2. The provided data does not include DSO values for Trinity Industries Inc, so it is difficult to assess the company's effectiveness in collecting receivables.
Number of Days of Payables:
1. This ratio indicates the number of days it takes for Trinity Industries Inc to pay its suppliers.
2. Unfortunately, the data does not provide information on the company's payables turnover, making it challenging to evaluate its payment practices and relationships with suppliers.
In conclusion, while Trinity Industries Inc's DOH shows some improvement in inventory turnover in 2024, the lack of data on DSO and payables turnover limits a comprehensive assessment of the company's overall efficiency in managing its working capital and operational assets.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.29 | 0.22 | 0.29 |
| Total asset turnover | 0.35 | 0.33 | 0.23 | 0.18 | 0.23 |
Trinity Industries Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, provide insights into the efficiency with which the company is utilizing its assets to generate revenue.
- Fixed Asset Turnover: The Fixed Asset Turnover ratio decreased from 0.29 in 2020 to 0.22 in 2021, suggesting a decline in the company's efficiency in generating sales from its fixed assets. However, it improved to 0.29 in 2022. Unfortunately, data for 2023 and 2024 are unavailable, making it difficult to track the trend further.
- Total Asset Turnover: The Total Asset Turnover ratio decreased from 0.23 in 2020 to 0.18 in 2021, indicating a decrease in the efficiency of utilizing total assets to generate revenue. It then increased to 0.23 in 2022, and notably improved to 0.33 in 2023, signaling enhanced asset utilization. The ratio further increased to 0.35 in 2024, reflecting continued progress in efficiently generating sales from total assets.
In summary, the Fixed Asset Turnover and Total Asset Turnover ratios for Trinity Industries Inc show fluctuations over the years, with some periods of inefficiency followed by improvements. The increase in Total Asset Turnover indicates enhanced efficiency in utilizing assets to drive revenue growth, which is a positive trend for the company's long-term financial performance.