Trinity Industries Inc (TRN)

Liquidity ratios

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
Current ratio 2.04 2.18 2.07 2.06 2.12 2.06 2.10 2.11 2.29 2.11 2.14 2.07 1.88 2.35 2.31 2.86 2.54 2.54 2.74 2.58
Quick ratio 0.38 0.37 0.57 0.38 0.20 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
Cash ratio 0.38 0.37 0.57 0.38 0.20 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

Trinity Industries Inc's current ratio has shown fluctuations over the past few years, ranging from a high of 2.86 in March 31, 2021, to a low of 1.88 in December 31, 2021. However, it has generally been above 2, indicating that the company has had a strong ability to meet its short-term obligations with its current assets.

The quick ratio, on the other hand, has displayed more volatility, with values ranging from a low of 0.09 in June 30, 2022, to a high of 0.57 in June 30, 2024. This ratio measures the ability of the company to cover its current liabilities with its most liquid assets, and the fluctuation suggests varying levels of liquidity risk over the period.

The cash ratio, which is a more stringent measure of liquidity, has also shown variability, with values ranging from 0.09 to 0.57. This ratio indicates the company's ability to cover its current liabilities with its cash and cash equivalents alone.

Overall, Trinity Industries Inc's liquidity ratios demonstrate that the company has generally been able to meet its short-term obligations with its current assets, but there have been fluctuations in the more stringent liquidity measures, suggesting the need for continued monitoring of the company's liquidity position.

Additional liquidity measure

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
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

The cash conversion cycle of Trinity Industries Inc has shown fluctuations over the periods provided. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

From March 31, 2020, to December 31, 2020, the cash conversion cycle increased steadily from 67.66 days to 77.72 days, indicating a potential slowdown in converting resources into cash inflows. This trend continued into the first half of 2021, with the cycle peaking at 118.84 days as of December 31, 2021.

However, there was a significant improvement in the cash conversion cycle in the following periods, with a gradual decline observed from March 31, 2022, to September 30, 2023, reaching a low of 77.74 days by September 30, 2024. This decline suggests more efficient management of working capital and faster conversion of resources into cash during these periods.

Overall, Trinity Industries Inc's cash conversion cycle demonstrated variability, with periods of both prolonged conversion times and improved efficiency. This analysis indicates the company's effectiveness in managing its working capital and the speed at which it can generate cash inflows from its operations.