Trinity Industries Inc (TRN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 93.59 | 98.87 | 102.17 | 118.99 | 127.91 | 149.68 | 136.73 | 113.96 | 102.92 | 101.67 | 96.27 | 61.87 | 49.66 | 53.88 | 54.02 | 60.35 | 59.85 | 90.77 | 81.27 | 78.45 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 93.59 | 98.87 | 102.17 | 118.99 | 127.91 | 149.68 | 136.73 | 113.96 | 102.92 | 101.67 | 96.27 | 61.87 | 49.66 | 53.88 | 54.02 | 60.35 | 59.85 | 90.77 | 81.27 | 78.45 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 93.59 + — – —
= 93.59
The cash conversion cycle of Trinity Industries, Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the company's cash conversion cycle improved to 101.43 days compared to the previous quarter. This improvement indicates that Trinity Industries was able to convert its investments in inventory and accounts payable into cash more efficiently during this period.
However, it is important to note that the cash conversion cycle was higher in the prior quarters, reaching its peak at 175.27 days in Q3 2022. This suggests that Trinity Industries faced challenges in managing its working capital effectively, leading to longer turnaround times for converting investments into cash during that period.
Overall, Trinity Industries should continue to monitor and strategically manage its cash conversion cycle to ensure optimal efficiency in converting its operational activities into cash inflows. By analyzing trends over time and identifying drivers of these fluctuations, the company can make informed decisions to improve its working capital management and overall financial performance.
Peer comparison
Dec 31, 2023