Trinity Industries Inc (TRN)
Quick ratio
| 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 | US$ in thousands | 105,700 | 114,000 | 91,700 | 81,900 | 79,600 | 58,500 | 49,700 | 143,200 | 167,300 | 221,800 | 91,000 | 178,100 | 132,000 | 120,800 | 157,000 | 213,200 | 166,200 | 97,600 | 102,800 | 73,900 |
| Short-term investments | US$ in thousands | — | 26,100 | 21,700 | 15,600 | 19,700 | 19,600 | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 607,600 | 653,800 | 641,400 | 588,200 | 548,500 | 575,500 | 569,300 | 508,800 | 513,800 | 505,000 | 464,000 | 435,500 | 471,100 | 512,700 | 513,800 | 557,000 | 546,000 | 619,700 | 564,000 | 533,600 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($105,700K
+ $—K
+ $—K)
÷ $607,600K
= 0.17
The quick ratio is an important liquidity ratio that measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Trinity Industries, Inc., the quick ratio has fluctuated over the past eight quarters, ranging from 0.58 to 0.81.
The quick ratio for Q4 2023 is 0.78, indicating that Trinity Industries has $0.78 of easily convertible assets for every $1 of current liabilities. This shows a slight decrease from the previous quarter's ratio of 0.79. While the Q4 2023 quick ratio is lower than Q2 and Q3 2023 ratios, it remains relatively stable compared to ratios from the previous year.
Looking at the trend over the past eight quarters, Trinity Industries has generally exhibited a fluctuating quick ratio, with some quarters showing improvement while others showing a decline. The company's quick ratio has stayed above 0.5, indicating that it has enough liquid assets to cover its short-term obligations. However, a ratio lower than 1 may suggest that Trinity Industries could potentially face liquidity challenges in meeting its current obligations.
Overall, the fluctuating trend of Trinity Industries' quick ratio over the past eight quarters indicates varying levels of liquidity and ability to meet short-term obligations. It would be beneficial for stakeholders to closely monitor this ratio to ensure the company maintains a healthy liquidity position.
Peer comparison
Dec 31, 2023