Trinity Industries Inc (TRN)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 228,200 | 105,700 | 79,600 | 167,300 | 132,000 |
| Short-term investments | US$ in thousands | — | 13,100 | 19,700 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 251,700 | 627,700 | 548,500 | 513,800 | 471,100 |
| Quick ratio | 0.91 | 0.19 | 0.18 | 0.33 | 0.28 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($228,200K
+ $—K
+ $—K)
÷ $251,700K
= 0.91
The quick ratio of Trinity Industries Inc has shown significant fluctuations over the years. In 2020, the quick ratio was low at 0.28, indicating that the company had limited short-term liquidity to cover its immediate liabilities. However, there was a slight improvement in 2021 with a quick ratio of 0.33, suggesting a better ability to meet short-term obligations.
Subsequently, in 2022 and 2023, the quick ratio dropped to 0.18 and 0.19 respectively, signaling a potential liquidity crunch or difficulties in covering short-term liabilities with current assets.
However, there was a notable spike in the quick ratio in 2024, reaching 0.91. This significant increase indicates a substantial improvement in Trinity Industries Inc's short-term liquidity position, with current assets more than sufficient to cover short-term liabilities.
Overall, fluctuations in the quick ratio highlight the importance of monitoring a company's liquidity position and its ability to meet short-term financial obligations effectively. It is essential for investors and stakeholders to assess these changes over time to understand the company's financial health and risk factors.
Peer comparison
Dec 31, 2024