Trinity Industries Inc (TRN)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,668,900 | 2,508,200 | 2,222,900 | 1,940,800 | 1,796,000 | 1,674,100 | 1,683,700 | 1,628,300 | 1,535,200 | 1,448,600 | 1,386,100 | 1,893,000 | 2,096,100 | 2,527,400 | 2,848,200 | 2,673,400 | 2,643,200 | 2,545,000 | 2,696,900 | 2,877,100 |
| Inventory | US$ in thousands | 684,300 | 679,400 | 622,200 | 632,700 | 629,400 | 686,500 | 630,700 | 508,400 | 432,900 | 403,500 | 365,600 | 320,900 | 285,200 | 373,100 | 421,500 | 442,000 | 433,400 | 632,900 | 600,500 | 618,400 |
| 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 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,668,900K ÷ $684,300K
= 3.90
Trinity Industries, Inc.'s inventory turnover has shown a consistent uptrend over the past eight quarters, indicating improved efficiency in managing its inventory. The inventory turnover ratio increased from 2.49 in Q1 2022 to 3.59 in Q4 2023, reaching its peak in the latest quarter. This suggests that the company is selling its inventory at a faster rate relative to previous periods.
The rising trend in inventory turnover can be a positive sign, as it implies that Trinity Industries is effectively managing its inventory levels, reducing carrying costs, and potentially boosting cash flows. A higher inventory turnover ratio generally indicates that the company is selling goods quickly and efficiently, which can translate into higher profitability and better overall financial performance.
Overall, the improving inventory turnover trend for Trinity Industries, Inc. suggests that the company is effectively managing its inventory levels and turning its inventory into sales more efficiently over time.
Peer comparison
Dec 31, 2023
Dec 31, 2023