Trinity Industries Inc (TRN)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,668,900 | 1,796,000 | 1,336,800 | 2,295,700 | 2,654,100 |
| Inventory | US$ in thousands | 684,300 | 629,400 | 432,900 | 285,200 | 433,400 |
| Inventory turnover | 3.90 | 2.85 | 3.09 | 8.05 | 6.12 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,668,900K ÷ $684,300K
= 3.90
Trinity Industries, Inc.'s inventory turnover has fluctuated over the past five years. The inventory turnover ratio indicates how efficiently the company manages its inventory by calculating the number of times it sells and replaces its inventory during a particular period.
In 2023, Trinity Industries achieved an inventory turnover of 3.59 times, showing an improvement from the previous year. This suggests that the company's inventory was sold and replaced approximately 3.59 times during the year, indicating a relatively efficient management of inventory.
Comparing this to the ratios of the preceding years, the trend fluctuates. In 2022, the inventory turnover was 2.56 times, indicating a slower rate of inventory turnover compared to 2023. However, the ratio improved from 2021 when it was 2.68 times.
The highest inventory turnover in the data set was in 2019, recorded at 5.46 times, followed by 4.70 times in 2020. This indicates that historically, Trinity Industries managed its inventory more efficiently and turned it over more frequently in those years compared to the more recent years.
Overall, Trinity Industries, Inc. should continue monitoring and evaluating its inventory management practices to ensure a balance between maintaining sufficient inventory levels to meet demand and minimizing excess inventory that could tie up capital and lead to potential obsolescence.
Peer comparison
Dec 31, 2023