Trinity Industries Inc (TRN)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.30 | 1.29 | 1.17 | 0.96 | 1.10 |
| Quick ratio | 0.17 | 0.18 | 0.33 | 0.28 | 0.30 |
| Cash ratio | 0.17 | 0.18 | 0.33 | 0.28 | 0.30 |
Trinity Industries, Inc.'s liquidity ratios show varying levels of short-term solvency over the past five years. The current ratio has remained relatively stable around 1.6 to 2.3, indicating the company's ability to meet its short-term obligations with its current assets. However, the quick ratio has shown more volatility, ranging from 0.75 to 1.65, suggesting a fluctuating ability to cover immediate liabilities without relying on inventory.
The cash ratio has also fluctuated over the years, with a low of 0.15 and a high of 0.33. This ratio indicates the company's ability to cover its short-term liabilities with its most liquid assets, cash and cash equivalents. Trinity's decreasing trend in the cash ratio could be a concern as it might signal a reduced ability to meet immediate obligations without relying on other current assets.
Overall, while Trinity Industries, Inc. generally maintains a healthy current ratio, its quick and cash ratios show some inconsistency, indicating potential challenges in managing liquidity efficiently over the years. Further analysis and monitoring of these ratios are recommended to ensure the company's financial health and stability.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 93.59 | 127.91 | 118.20 | 45.34 | 59.60 |
The cash conversion cycle of Trinity Industries, Inc. has fluctuated over the past five years. In 2023, the cash conversion cycle improved to 101.43 days compared to 138.69 days in 2022. This indicates that the company was able to manage its cash, inventory, and receivables more efficiently in 2023.
In 2021, the cash conversion cycle was 127.28 days, showing a slight decrease from the previous year. However, in 2020, the cycle extended to 157.59 days, which suggests potential issues in managing working capital effectively during that period.
The most efficient performance in recent years was observed in 2019 when the cash conversion cycle was only 68.79 days, indicating strong management of cash flow, inventory, and receivables.
Overall, it is essential for Trinity Industries to closely monitor and manage its cash conversion cycle to ensure optimal utilization of resources and efficient operations.