Trinity Industries Inc (TRN)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,983,300 | 1,977,300 | 1,516,000 | 1,749,700 | 2,752,400 |
| Property, plant and equipment | US$ in thousands | 7,004,800 | 6,886,800 | 6,846,900 | 6,968,800 | 7,110,600 |
| Fixed asset turnover | 0.43 | 0.29 | 0.22 | 0.25 | 0.39 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,983,300K ÷ $7,004,800K
= 0.43
Trinity Industries, Inc.'s fixed asset turnover ratio has experienced fluctuations over the past five years. The ratio stood at 0.43 in 2023, representing an improvement from the previous year's 0.29. This suggests that the company generated $0.43 in sales for every $1 invested in fixed assets during the year, indicating more efficient utilization of its fixed assets to generate revenue.
In 2022, the fixed asset turnover ratio was 0.29, showing a decrease from the prior year's ratio of 0.42. This decrease could indicate either a decline in sales relative to fixed assets or an increase in the book value of fixed assets without a corresponding increase in sales.
In 2021, Trinity Industries, Inc. recorded a fixed asset turnover ratio of 0.22, which was the lowest among the five years analyzed. This low ratio suggests a less effective use of fixed assets to generate sales during that year.
The company's fixed asset turnover ratio in 2020 was 0.29, showing consistency with the ratio in 2022. This suggests that the company maintained a similar level of efficiency in utilizing fixed assets to generate sales in those two years.
In 2019, Trinity Industries, Inc. achieved a fixed asset turnover ratio of 0.42, which was higher than the ratio in the subsequent years. This indicates that the company was more efficient at utilizing fixed assets to generate sales in 2019 compared to the following years.
Overall, the trend in Trinity Industries, Inc.'s fixed asset turnover ratio shows some variability, with improvements in 2023 relative to 2022 and declines from 2019 to 2021. It is essential for the company to assess the reasons behind these fluctuations and implement strategies to enhance the efficiency of its fixed asset utilization in generating sales.
Peer comparison
Dec 31, 2023