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