Trinity Industries Inc (TRN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,983,300 | 2,776,600 | 2,451,900 | 2,146,300 | 1,977,300 | 1,858,300 | 1,781,500 | 1,658,000 | 1,516,000 | 1,403,500 | 1,380,500 | 1,527,100 | 1,749,700 | 2,240,700 | 2,657,500 | 2,953,600 | 3,005,100 | 2,889,400 | 2,682,700 | 2,580,700 |
| Total current assets | US$ in thousands | 790,000 | 793,400 | 713,900 | 714,600 | 709,000 | 745,000 | 680,400 | 651,600 | 600,200 | 625,300 | 456,600 | 499,000 | 453,200 | 493,900 | 578,500 | 655,200 | 599,600 | 731,400 | 703,300 | 692,300 |
| Total current liabilities | US$ in thousands | 607,600 | 653,800 | 641,400 | 588,200 | 548,500 | 575,500 | 569,300 | 508,800 | 513,800 | 505,000 | 464,000 | 435,500 | 471,100 | 512,700 | 513,800 | 557,000 | 546,000 | 619,700 | 564,000 | 533,600 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,983,300K ÷ ($790,000K – $607,600K)
= 16.36
Trinity Industries, Inc.'s working capital turnover has shown a steady increase from Q1 2022 to Q4 2023. This ratio indicates how efficiently the company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio suggests that the company is effectively managing its working capital to support its operations and generate sales.
The increasing trend in Trinity Industries, Inc.'s working capital turnover indicates that the company has been improving its efficiency in using its working capital to generate revenue. This could be attributed to better management of inventory, receivables, and payables, which has positively impacted the company's overall operational performance.
The spike in Q4 2023 (5.41) compared to Q1 2023 (4.57) could suggest that Trinity Industries, Inc. has made significant improvements in its working capital management in the most recent quarter, possibly through more efficient inventory management, tighter credit policies, or better cash flow management.
Overall, the upward trend in Trinity Industries, Inc.'s working capital turnover indicates that the company is becoming more efficient in utilizing its working capital resources to drive sales and support its business activities.
Peer comparison
Dec 31, 2023