Trinity Industries Inc (TRN)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.54% | 9.17% | 11.82% | -16.93% | 12.75% |
| Operating profit margin | 13.98% | 16.89% | 16.94% | -8.84% | 14.42% |
| Pretax margin | 3.85% | 4.44% | 13.05% | -24.08% | 7.14% |
| Net profit margin | 3.55% | 3.04% | 12.01% | -8.42% | 5.00% |
Trinity Industries Inc.'s profitability ratios present a mixed performance over the past five years. The gross profit margin has been declining steadily from 24.56% in 2020 to 17.67% in 2023, indicating decreasing efficiency in generating profits from sales after deducting direct production costs. This trend suggests potential challenges in managing production costs or pricing strategies.
On the other hand, the operating profit margin has shown some volatility, with a notable increase in 2021 (11.54%) compared to the prior years. However, this metric decreased to 10.90% in 2023, indicating that the company's ability to control operating expenses and generate profits from core operations has weakened slightly.
The pretax margin has fluctuated significantly over the years, with a sharp decline to -24.73% in 2020, which could be attributed to one-time charges or exceptional events. The positive trend from 2020 to 2023 suggests an improvement in the company's ability to manage income before taxes, although further stability would be beneficial.
Trinity Industries Inc.'s net profit margin has also been subject to fluctuations, with a significant drop to -7.37% in 2020. While the margin rebounded to 3.55% in 2023, it remains below the levels observed in 2021 and 2019. This indicates that the company's ability to translate revenues into bottom-line profits has been inconsistent, possibly due to varying cost structures or irregular income streams.
Overall, Trinity Industries Inc. faces challenges in sustaining and improving profitability ratios, with particular emphasis on enhancing gross profit margins, stabilizing operating profit margins, and managing costs effectively to achieve consistent and sustainable net profit margins. Continued monitoring and strategic adjustments may be necessary to enhance profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.68% | 3.83% | 3.12% | -1.78% | 4.56% |
| Return on assets (ROA) | 1.19% | 0.69% | 2.21% | -1.69% | 1.58% |
| Return on total capital | 6.34% | 23.86% | 4.07% | -2.89% | 5.89% |
| Return on equity (ROE) | 10.22% | 5.94% | 17.67% | -8.47% | 6.78% |
Trinity Industries, Inc.'s profitability ratios show mixed performance over the past five years. The Operating return on assets (Operating ROA) has been relatively stable, ranging from 2.09% to 4.33%. This indicates that the company has been able to generate operating income efficiently relative to its total assets, with a peak in 2019.
However, the overall Return on assets (ROA) has been more volatile, with a negative figure in 2020. This suggests that the company faced challenges in generating net income from its total assets during that period. The Return on total capital also shows fluctuation, indicating varying profitability levels in relation to the total capital employed by the company.
The Return on equity (ROE) has shown a similar pattern, with wide variations in performance over the years. The negative ROE in 2020 indicates that the company experienced a loss in equity value during that period, which is a concerning trend. However, the ROE rebounded in the following years, reaching a peak in 2021.
Overall, Trinity Industries, Inc. has shown a mixed performance in terms of profitability ratios, with fluctuations in return metrics across different years. Investors and stakeholders may need to closely monitor the company's financial performance and management strategies to ensure sustained profitability and value creation.