Trinity Industries Inc (TRN)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,079,200 | 2,983,300 | 1,977,300 | 1,516,000 | 1,999,400 |
| Total current assets | US$ in thousands | 607,300 | 1,288,100 | 1,255,000 | 968,300 | 1,194,400 |
| Total current liabilities | US$ in thousands | 251,700 | 627,700 | 548,500 | 513,800 | 471,100 |
| Working capital turnover | 8.66 | 4.52 | 2.80 | 3.34 | 2.76 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,079,200K ÷ ($607,300K – $251,700K)
= 8.66
The working capital turnover of Trinity Industries Inc has shown fluctuations over the past five years. The ratio was 2.76 in December 31, 2020, indicating that the company generated $2.76 in revenue for every dollar of working capital invested. The ratio improved to 3.34 in December 31, 2021, suggesting a more efficient utilization of working capital.
However, in December 31, 2022, the ratio decreased to 2.80, indicating a slight decline in the efficiency of working capital management. There was a significant improvement in December 31, 2023, with the ratio increasing to 4.52, reflecting a substantial increase in revenue generated per unit of working capital.
The most significant improvement was seen in December 31, 2024, where the working capital turnover ratio surged to 8.66. This indicates a remarkable efficiency in utilizing working capital to generate revenue. Overall, the trend in the working capital turnover ratio shows variability, with ups and downs, but with a notable improvement in the most recent year, signifying potential enhancements in working capital management efficiency.
Peer comparison
Dec 31, 2024