Trinity Industries Inc (TRN)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.90 | 3.69 | 3.57 | 3.07 | 2.85 | 2.44 | 2.67 | 3.20 | 3.55 | 3.59 | 3.79 | 5.90 | 7.35 | 6.77 | 6.76 | 6.05 | 6.10 | 4.02 | 4.49 | 4.65 | |
| DOH | days | 93.59 | 98.87 | 102.17 | 118.99 | 127.91 | 149.68 | 136.73 | 113.96 | 102.92 | 101.67 | 96.27 | 61.87 | 49.66 | 53.88 | 54.02 | 60.35 | 59.85 | 90.77 | 81.27 | 78.45 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.90
= 93.59
Trinity Industries, Inc.'s days of inventory on hand (DOH) has exhibited a declining trend over the past eight quarters. In Q1 2022, the company had a relatively high DOH of 146.81 days, which gradually decreased to 101.69 days in Q4 2023. This signifies that Trinity has been managing its inventory more efficiently, taking fewer days to sell off its inventory holdings.
The decrease in DOH indicates improved inventory management, better sales forecasting, or efficient production processes. A decreasing trend in DOH may also suggest that Trinity is effectively controlling its inventory levels to reduce carrying costs and minimize the risk of obsolete inventory.
Trinity's downward trend in DOH is a positive signal for the company's operational efficiency and financial health, as it implies that they are more agile in responding to changes in demand and are optimizing their working capital. However, it would be beneficial to monitor this metric over time to ensure that the trend persists and does not lead to stockouts or operational disruptions.
Peer comparison
Dec 31, 2023