Trinity Industries Inc (TRN)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 105,700 | 79,600 | 167,300 | 132,000 | 166,200 |
| Short-term investments | US$ in thousands | — | 19,700 | — | — | — |
| Total current liabilities | US$ in thousands | 607,600 | 548,500 | 513,800 | 471,100 | 546,000 |
| Cash ratio | 0.17 | 0.18 | 0.33 | 0.28 | 0.30 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($105,700K
+ $—K)
÷ $607,600K
= 0.17
The cash ratio for Trinity Industries, Inc. has displayed fluctuations over the past five years. The cash ratio, which measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents, was at 0.17 as of December 31, 2023. This indicates that for every dollar of current liabilities, Trinity Industries had $0.17 in cash and cash equivalents on hand.
Comparing this to previous years, we observe a decrease from 0.15 in 2022 to 0.17 in 2023, which suggests a slight improvement in the company's liquidity position. However, when looking at a longer-term trend, the cash ratio has shown variability, with ratios of 0.33 in 2021, 0.28 in 2020, and 0.30 in 2019.
While the cash ratio for Trinity Industries in 2023 is lower than the ratios observed in 2021 and 2019, it is important to note that the ideal cash ratio varies by industry and company. A lower cash ratio may indicate that Trinity Industries relies more on other liquid assets or short-term investments to meet its current obligations. Stakeholders may want to further investigate the company's cash management strategy and consider other liquidity metrics to gain a comprehensive understanding of its financial health.
Peer comparison
Dec 31, 2023