Trinity Industries Inc (TRN)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.70% | 17.67% | 18.60% | 23.38% | 24.56% |
| Operating profit margin | 15.96% | 13.98% | -4.68% | -5.89% | -7.87% |
| Pretax margin | 7.20% | 4.99% | 6.40% | 3.64% | -24.73% |
| Net profit margin | 4.49% | 3.55% | 5.00% | 2.59% | -11.31% |
Trinity Industries Inc's profitability ratios have shown variability over the years. The gross profit margin has seen a slight decrease from 24.56% in 2020 to 21.70% in 2024. This may indicate challenges in maintaining profitability at the gross level.
The operating profit margin reflects the company's ability to control its operating expenses. Trinity Industries Inc has improved its operating profit margin significantly from negative values in 2020 and 2021 to 15.96% in 2024. This improvement suggests better operational efficiency and cost management.
The pretax margin has also shown a positive trend, increasing from negative values in 2020 to 7.20% in 2024. This indicates that the company has been able to generate profits before tax more effectively over the years.
Lastly, the net profit margin, which measures the company's bottom line profitability, has shown improvement, increasing from negative values in 2020 to 4.49% in 2024. This suggests that Trinity Industries Inc has been able to enhance its profitability after accounting for all expenses, including taxes.
Overall, Trinity Industries Inc has made progress in improving its profitability ratios, demonstrated by the positive trends in operating profit margin, pretax margin, and net profit margin, despite a slight decline in gross profit margin.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.56% | 4.68% | -1.06% | -1.08% | -1.81% |
| Return on assets (ROA) | 1.57% | 1.19% | 1.13% | 0.48% | -2.60% |
| Return on total capital | 37.89% | 39.97% | 17.94% | 16.92% | -18.79% |
| Return on equity (ROE) | 10.59% | 10.22% | 9.77% | 3.82% | -13.00% |
Trinity Industries Inc's profitability ratios demonstrate mixed performance over the period analyzed.
1. Operating Return on Assets (Operating ROA) improved significantly from negative values in 2020 and 2021 to positive figures in 2023 and 2024. This indicates that the company generated operating profits from its assets in these years.
2. Return on Assets (ROA) also displayed an upward trend from negative values in 2020 to positive values in subsequent years, reaching its peak in 2024. This suggests that Trinity Industries Inc became more efficient in generating profits from its total assets over time.
3. Return on Total Capital exhibited a volatile pattern, with a sharp decline in 2020 followed by a substantial increase in 2023 and 2024. This suggests that the company effectively utilized its total capital to generate returns in those years.
4. Return on Equity (ROE) showed a similar trend to ROA, gradually increasing from negative values in 2020 to positive values in 2023 and 2024. This indicates that Trinity Industries Inc provided better returns to its equity shareholders over the analyzed period.
Overall, Trinity Industries Inc's profitability ratios reflect improved profitability and efficiency in utilizing its assets and capital, leading to better returns for both operating activities and equity shareholders in recent years.