Trinity Industries Inc (TRN)

Inventory turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 2,415,600 2,578,200 2,628,400 2,564,100 2,456,200 2,309,400 2,025,200 1,749,600 1,609,600 1,495,100 1,498,500 1,432,100 1,329,600 1,249,200 1,185,000 1,322,400 1,508,400 1,887,800 2,202,400 2,384,300
Inventory US$ in thousands 476,200 549,100 616,900 643,100 684,300 679,400 622,200 632,700 629,400 686,500 630,700 508,400 432,900 403,500 365,600 320,900 321,200 373,100 421,500 442,000
Inventory turnover 5.07 4.70 4.26 3.99 3.59 3.40 3.25 2.77 2.56 2.18 2.38 2.82 3.07 3.10 3.24 4.12 4.70 5.06 5.23 5.39

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,415,600K ÷ $476,200K
= 5.07

Trinity Industries Inc's inventory turnover has shown a declining trend over the past few years. The company's inventory turnover ratio decreased from 5.39 in March 2020 to 5.07 in December 2024. This indicates that Trinity Industries is taking longer to sell its inventory, which may suggest inefficiencies in managing and selling its inventory.

A lower inventory turnover ratio could imply excess inventory levels, slow-moving or obsolete inventory, or difficulties in selling products. It may also lead to increased holding costs and potential write-downs of inventory.

It is crucial for Trinity Industries to closely monitor its inventory turnover ratio to optimize inventory levels, improve liquidity, and enhance profitability. The company may need to evaluate its inventory management practices, streamline operations, and assess demand forecasting to improve its inventory turnover.


Peer comparison

Dec 31, 2024

Dec 31, 2024

Company name
Symbol
Inventory turnover
Trinity Industries Inc
TRN
5.07
Greenbrier Companies Inc
GBX
3.87
Westinghouse Air Brake Technologies Corp
WAB
3.76