Trinity Industries Inc (TRN)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,983,300 | 1,977,300 | 1,516,000 | 1,749,700 | 2,752,400 |
| Total current assets | US$ in thousands | 790,000 | 709,000 | 600,200 | 453,200 | 599,600 |
| Total current liabilities | US$ in thousands | 607,600 | 548,500 | 513,800 | 471,100 | 546,000 |
| Working capital turnover | 16.36 | 12.32 | 17.55 | — | 51.35 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,983,300K ÷ ($790,000K – $607,600K)
= 16.36
The working capital turnover of Trinity Industries, Inc. has been fluctuating over the past five years. In 2019, the company achieved a high ratio of 9.15, indicating that it generated $9.15 in revenue for every dollar of working capital invested. However, in 2020, the ratio dropped to 3.19, reflecting a decrease in efficiency in utilizing working capital to generate sales.
Subsequently, in 2021 and 2022, Trinity Industries improved its working capital turnover to 4.75 and 4.02, respectively, showing a better utilization of working capital to support revenue generation. The company's efficiency further increased in 2023 with a working capital turnover of 5.41, indicating that Trinity Industries has been more effective in converting its working capital into sales revenue in the most recent year.
Overall, the trend in working capital turnover suggests that Trinity Industries has been working towards optimizing its working capital management and improving operational efficiency over the five-year period.
Peer comparison
Dec 31, 2023