Trinity Industries Inc (TRN)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 228,200 | 105,700 | 79,600 | 167,300 | 132,000 |
| Short-term investments | US$ in thousands | — | 13,100 | 19,700 | — | — |
| Total current liabilities | US$ in thousands | 251,700 | 627,700 | 548,500 | 513,800 | 471,100 |
| Cash ratio | 0.91 | 0.19 | 0.18 | 0.33 | 0.28 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($228,200K
+ $—K)
÷ $251,700K
= 0.91
The cash ratio for Trinity Industries Inc has shown fluctuation over the years based on the provided data. As of December 31, 2020, the cash ratio was 0.28, indicating that the company had $0.28 of cash and cash equivalents for every $1 of current liabilities. This ratio improved to 0.33 by December 31, 2021, suggesting a stronger ability to cover short-term obligations from cash reserves.
However, there was a notable decrease in the cash ratio to 0.18 by December 31, 2022, which may signal a potential liquidity challenge for the company. The ratio slightly increased to 0.19 by the end of 2023, but remained relatively low compared to previous years.
The most significant change occurred by December 31, 2024, where the cash ratio spiked to 0.91. This sharp increase indicates a substantial improvement in the company's liquidity position, with nearly enough cash and cash equivalents to cover its current liabilities. Overall, the fluctuation in Trinity Industries Inc's cash ratio reflects varying levels of liquidity and potential changes in the company's cash management practices over the years.
Peer comparison
Dec 31, 2024