Trinity Industries Inc (TRN)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 71.95 | 77.74 | 85.67 | 91.55 | 101.69 | 107.38 | 112.14 | 131.99 | 142.73 | 167.60 | 153.62 | 129.58 | 118.84 | 117.90 | 112.61 | 88.57 | 77.72 | 72.14 | 69.85 | 67.66 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 71.95 | 77.74 | 85.67 | 91.55 | 101.69 | 107.38 | 112.14 | 131.99 | 142.73 | 167.60 | 153.62 | 129.58 | 118.84 | 117.90 | 112.61 | 88.57 | 77.72 | 72.14 | 69.85 | 67.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 71.95 + — – —
= 71.95
The cash conversion cycle of Trinity Industries Inc has shown some fluctuations over the period under consideration. The cycle, which represents the time it takes for a company to convert its investments in inventory and other inputs into cash flows from sales, started at 67.66 days as of March 31, 2020.
The cycle gradually increased over the next few quarters, reaching its peak at 167.60 days as of September 30, 2022. This prolonged cycle may indicate challenges with managing inventory levels, collecting receivables, and paying off payables efficiently.
However, from that point onwards, the company made significant improvements in managing its cash conversion cycle, with a notable decline to 71.95 days by December 31, 2024. This downward trend is a positive signal, as it suggests enhanced efficiency in the company's operations and cash flow management.
Overall, while there were fluctuations in the cash conversion cycle of Trinity Industries Inc over the period analyzed, the company managed to make improvements and optimize its working capital management towards the end of the period, which is a positive development for its financial health and operational efficiency.
Peer comparison
Dec 31, 2024