Trinity Industries Inc (TRN)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.91 | 4.61 | 4.58 | 4.48 | 4.38 | 4.01 | 3.46 | 3.30 | 2.80 | 2.90 | 2.88 | 3.33 | 3.84 | 2.48 | 2.70 | 2.20 | 2.76 | 3.09 | 3.13 | 3.42 |
Trinity Industries Inc's inventory turnover has shown a decreasing trend over the past few years, declining from 5.39 in March 2020 to 5.07 in December 2024. This indicates that the company is taking longer to sell its inventory, which may result in excess or obsolete inventory.
The receivables turnover ratio is not provided in the data, which makes it difficult to assess how efficiently Trinity is collecting its receivables from customers. A consistent or improving receivables turnover ratio would suggest good management of accounts receivable.
Similarly, the payables turnover ratio is also not available in the data, so it is unclear how quickly Trinity is paying its suppliers.
The working capital turnover ratio for Trinity has fluctuated over the years, indicating varying efficiency in utilizing its working capital to generate sales. The ratio has shown an increasing trend from 2.20 in March 2021 to 4.91 in December 2024, suggesting improvement in working capital efficiency.
Overall, Trinity Industries Inc should focus on improving its inventory management to enhance its efficiency in converting inventory into sales, alongside keeping a close eye on its receivables and payables turnover for better cash flow management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 71.95 | 77.74 | 85.67 | 91.55 | 101.69 | 107.38 | 112.14 | 131.99 | 142.73 | 167.60 | 153.62 | 129.58 | 118.84 | 117.90 | 112.61 | 88.57 | 77.72 | 72.14 | 69.85 | 67.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Trinity Industries Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- Trinity Industries Inc's DOH has shown a fluctuating trend over the quarters, ranging from 67.66 days to 167.60 days.
- The data indicates an increase in inventory holding periods over the quarters, which could imply potential issues with inventory management efficiency.
- The company should focus on optimizing inventory levels to avoid excess holding costs and potential obsolescence.
2. Days of Sales Outstanding (DSO):
- The data for DSO is not provided, indicating a lack of information on how long it takes for the company to collect its accounts receivable.
- Without this information, it is challenging to assess the effectiveness of Trinity Industries Inc in collecting revenue from customers in a timely manner.
3. Number of Days of Payables:
- Similar to DSO, there is no data provided for the number of days of payables, which would indicate how long the company takes to pay its suppliers.
- This information is crucial for understanding the company's payment practices and liquidity management.
In conclusion, while the analysis of Days of Inventory on Hand provides insights into Trinity Industries Inc's inventory management, the absence of data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of the company's overall activity ratios.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 0.40 | 0.35 | 0.31 | 0.29 | 0.27 | 0.27 | 0.27 | 0.26 | 0.25 | 3.39 | 0.25 | 0.29 | 0.35 | 0.41 | 0.42 |
| Total asset turnover | 0.35 | 0.37 | 0.37 | 0.35 | 0.33 | 0.31 | 0.27 | 0.24 | 0.23 | 0.22 | 0.22 | 0.22 | 0.21 | 0.20 | 0.19 | 0.20 | 0.23 | 0.28 | 0.32 | 0.33 |
Trinity Industries Inc's long-term activity ratios show varying efficiency in utilizing its fixed assets and total assets over the years. The fixed asset turnover ratio has fluctuated, with a significant improvement from June 30, 2021, indicating a substantial increase in revenue generated by its fixed assets at that time. However, the ratio decreased in the subsequent periods but stabilized around 0.27 in the most recent periods, suggesting consistent but moderate utilization of fixed assets.
In contrast, the total asset turnover ratio reflects a similar trend but is generally lower, indicating that the company is generating less revenue relative to its total assets compared to its fixed assets alone. The ratio improved gradually from March 31, 2023, indicating a more efficient use of total assets to generate revenue.
Overall, while the fixed asset turnover ratio has shown some volatility before stabilizing, the total asset turnover ratio demonstrates a relatively steady improvement in efficiency. This suggests that Trinity Industries Inc has been working towards better leveraging its assets to generate revenue over the long term.