Trinity Industries Inc (TRN)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.09 | 101.69 | 142.73 | 136.04 | 77.72 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 72.09 | 101.69 | 142.73 | 136.04 | 77.72 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 72.09 + — – —
= 72.09
The cash conversion cycle of Trinity Industries Inc has shown fluctuations over the past five years. In December 2020, the company's cash conversion cycle was 77.72 days, indicating that it took approximately 77 days to convert its investments in inventory and accounts receivable into cash.
However, by the end of 2021, the cash conversion cycle increased significantly to 136.04 days, suggesting a longer period for Trinity Industries Inc to convert its operating assets into cash. This may be attributed to issues such as slower collections on accounts receivable or higher inventory levels.
The trend continued in 2022, with the cash conversion cycle further elongating to 142.73 days, indicating potential challenges in managing working capital efficiently within the company.
In 2023, Trinity Industries Inc managed to reduce its cash conversion cycle to 101.69 days, implying an improvement in its operational efficiency in converting assets into cash compared to the previous year.
By the end of 2024, Trinity Industries Inc's cash conversion cycle decreased further to 72.09 days, potentially signaling enhanced working capital management and a more streamlined process in converting its operational investments into cash.
Overall, the fluctuating trend in Trinity Industries Inc's cash conversion cycle over the years reflects the company's ability to effectively manage its working capital and operational efficiency. It is essential for the company to closely monitor and optimize its cash conversion cycle to ensure sustainable financial performance and liquidity management.
Peer comparison
Dec 31, 2024