Trinity Industries Inc (TRN)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,983,300 | 2,776,600 | 2,451,900 | 2,146,300 | 1,977,300 | 1,858,300 | 1,781,500 | 1,658,000 | 1,516,000 | 1,403,500 | 1,380,500 | 1,527,100 | 1,749,700 | 2,240,700 | 2,657,500 | 2,953,600 | 3,005,100 | 2,889,400 | 2,682,700 | 2,580,700 |
| Property, plant and equipment | US$ in thousands | 7,004,800 | 6,991,200 | 7,029,200 | 6,976,500 | 6,886,800 | 6,893,800 | 6,944,100 | 6,803,600 | 6,846,900 | 6,800,100 | 7,048,700 | 7,026,800 | 6,968,800 | 6,937,900 | 6,784,400 | 7,118,700 | 7,110,600 | 6,916,700 | 6,869,600 | 6,746,800 |
| Fixed asset turnover | 0.43 | 0.40 | 0.35 | 0.31 | 0.29 | 0.27 | 0.26 | 0.24 | 0.22 | 0.21 | 0.20 | 0.22 | 0.25 | 0.32 | 0.39 | 0.41 | 0.42 | 0.42 | 0.39 | 0.38 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,983,300K ÷ $7,004,800K
= 0.43
Trinity Industries, Inc.'s fixed asset turnover has shown a fluctuating trend over the past eight quarters. The ratio increased from 0.23 in Q1 2022 to 0.43 in Q4 2023. This indicates that the company generated $0.43 in revenue for every $1 invested in fixed assets during Q4 2023.
The gradual improvement in fixed asset turnover suggests that Trinity Industries has been utilizing its fixed assets more efficiently to generate sales revenue. The company has been able to generate more revenue relative to its investment in fixed assets, which is a positive sign of operational efficiency.
However, it is worth noting that the ratio dipped in some quarters, such as Q2 and Q3 of 2023, which may indicate temporary challenges or fluctuations in the company's operations or sales performance during those periods.
Overall, the increasing trend in fixed asset turnover for Trinity Industries, Inc. indicates improved efficiency in utilizing fixed assets to drive revenue growth. Monitoring this ratio in conjunction with other financial metrics can provide a comprehensive understanding of the company's operational performance and asset utilization.
Peer comparison
Dec 31, 2023