Trinity Industries Inc (TRN)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 16.36 | 19.89 | 33.82 | 16.98 | 12.32 | 10.96 | 16.04 | 11.61 | 17.55 | 11.67 | — | 24.05 | — | — | 41.07 | 30.08 | 56.07 | 25.87 | 19.26 | 16.26 |
Trinity Industries, Inc.'s inventory turnover has been showing a positive trend, gradually increasing from 2.56 in Q4 2022 to 3.59 in Q4 2023. This indicates that the company is managing its inventory more efficiently and selling its products more quickly.
The receivables turnover ratio has also shown improvement over the quarters, with a peak of 8.16 in Q1 2022. This suggests that Trinity Industries is collecting its receivables faster, which is a positive sign for its cash flow and liquidity.
Similarly, the payables turnover ratio has been relatively stable, hovering around 5.60 to 8.05 over the quarters. This indicates that the company is taking an appropriate amount of time to pay its suppliers.
The working capital turnover ratio has been increasing from 3.53 in Q3 2022 to 5.41 in Q4 2023. This suggests that Trinity Industries is generating sales more efficiently in relation to its working capital, which is a good indicator of the company's overall operational performance.
Overall, Trinity Industries appears to be effectively managing its activity ratios, with improvements in inventory turnover, receivables turnover, and working capital turnover, which reflect positively on its operational efficiency and financial health.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 93.59 | 98.87 | 102.17 | 118.99 | 127.91 | 149.68 | 136.73 | 113.96 | 102.92 | 101.67 | 96.27 | 61.87 | 49.66 | 53.88 | 54.02 | 60.35 | 59.85 | 90.77 | 81.27 | 78.45 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Trinity Industries, Inc.'s activity ratios show different trends over the past eight quarters. The days of inventory on hand have decreased steadily from 188.83 days in Q3 2022 to 101.69 days in Q4 2023. This indicates that the company has been managing its inventory more efficiently, potentially through better inventory control or demand forecasting.
On the other hand, days of sales outstanding have fluctuated, with Q2 and Q3 2023 showing higher values compared to earlier quarters. This suggests that the company is taking longer to collect payments from customers during these periods, which could be due to changes in sales terms or customer creditworthiness.
The number of days of payables has also fluctuated, but generally, the trend has been increasing over the quarters. This indicates that Trinity Industries is taking longer to pay its bills, potentially to improve cash flow or to benefit from extended payment terms with suppliers.
In summary, Trinity Industries has improved its inventory management efficiency but needs to focus on reducing the collection period from customers and managing its payables effectively to optimize its working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.33 | 0.31 | 0.27 | 0.24 | 0.23 | 0.22 | 0.21 | 0.20 | 0.18 | 0.17 | 0.16 | 0.17 | 0.20 | 0.26 | 0.31 | 0.33 | 0.35 | 0.33 | 0.31 | 0.31 |
Trinity Industries, Inc.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, show varying trends over the past eight quarters.
The fixed asset turnover ratio, which measures how efficiently the company utilizes its fixed assets to generate sales, has been improving steadily over the past two years. As of Q4 2023, the ratio stands at 0.43, indicating that Trinity Industries is generating $0.43 in sales for every dollar invested in fixed assets. This improvement suggests that the company is becoming more efficient in utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio, which indicates how well a company utilizes its total assets to generate revenue, also shows an upward trend but at a slower pace compared to the fixed asset turnover ratio. As of Q4 2023, the total asset turnover ratio is 0.33, showing an improvement from the previous quarters. This indicates that Trinity Industries is generating $0.33 in sales for every dollar of total assets on its balance sheet.
Overall, both ratios suggest that Trinity Industries is becoming more efficient in generating revenue relative to its investment in fixed and total assets. The increase in asset turnover ratios may indicate better operational efficiency and effective asset management, which could positively impact the company's financial performance and profitability in the long term.