Trinity Industries Inc (TRN)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.30 | 1.21 | 1.11 | 1.21 | 1.29 | 1.29 | 1.20 | 1.28 | 1.17 | 1.24 | 0.98 | 1.15 | 0.96 | 0.96 | 1.13 | 1.18 | 1.10 | 1.18 | 1.25 | 1.30 |
| Quick ratio | 0.17 | 0.21 | 0.18 | 0.17 | 0.18 | 0.14 | 0.09 | 0.28 | 0.33 | 0.44 | 0.20 | 0.41 | 0.28 | 0.24 | 0.31 | 0.38 | 0.30 | 0.16 | 0.18 | 0.14 |
| Cash ratio | 0.17 | 0.21 | 0.18 | 0.17 | 0.18 | 0.14 | 0.09 | 0.28 | 0.33 | 0.44 | 0.20 | 0.41 | 0.28 | 0.24 | 0.31 | 0.38 | 0.30 | 0.16 | 0.18 | 0.14 |
Trinity Industries, Inc.'s liquidity ratios indicate the company's ability to meet its short-term obligations.
The current ratio has been relatively stable over the past eight quarters, ranging from 1.66 to 1.91. This ratio suggests that the company has sufficient current assets to cover its current liabilities, with the latest ratio of 1.91 indicating a strong liquidity position.
The quick ratio has also been fairly consistent, fluctuating between 0.58 and 0.81. While this ratio is lower than the current ratio, it provides a more stringent measure of liquidity as it excludes inventory from current assets. The latest quick ratio of 0.78 indicates that Trinity Industries may have slightly fewer liquid assets to cover its immediate liabilities.
The cash ratio, representing the most stringent measure of liquidity, shows a wider range of values from 0.09 to 0.28. This ratio is the most conservative as it only considers cash and cash equivalents. The latest cash ratio of 0.17 implies that Trinity Industries may have a moderate level of cash on hand relative to its current liabilities.
Overall, Trinity Industries appears to have maintained a solid liquidity position over the past eight quarters, as evidenced by its current, quick, and cash ratios. However, it may be beneficial for the company to continue monitoring these ratios to ensure ongoing ability to meet its short-term financial obligations.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Trinity Industries, Inc. has shown some fluctuations over the past eight quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In Q4 2023, Trinity Industries, Inc. recorded a cash conversion cycle of 101.43 days, showing an improvement from the previous quarter, Q3 2023, where the cycle was 108.56 days. This lower cycle indicates that the company was able to manage its working capital more efficiently in Q4 2023.
Looking back further, the cash conversion cycle of Trinity Industries, Inc. has generally been trending downwards since Q2 2022, when it peaked at 175.27 days. This indicates that the company has been able to streamline its operations and improve its cash flow management over the past quarters.
Despite some quarterly fluctuations, it is evident that Trinity Industries, Inc. has made progress in optimizing its cash conversion cycle, which is a positive sign for the company's financial health and efficient use of its resources. It will be important for the company to continue monitoring and managing its working capital effectively to sustain this improved performance in the future.