Trinity Industries Inc (TRN)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 417,000 | 334,000 | 256,800 | -154,600 | 396,800 |
| Total assets | US$ in thousands | 8,906,500 | 8,724,300 | 8,235,900 | 8,701,800 | 8,701,400 |
| Operating ROA | 4.68% | 3.83% | 3.12% | -1.78% | 4.56% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $417,000K ÷ $8,906,500K
= 4.68%
Trinity Industries, Inc.'s operating return on assets (ROA) has fluctuated over the past five years, ranging from 2.09% to 4.33%. The company's operating ROA for the most recent year, 2023, stands at 3.65%, representing an increase from the prior year's 2.09%. This indicates that Trinity Industries has been more effective in generating operating income from its assets in 2023 compared to 2022, showing improved operational efficiency.
Despite the improvement in 2023, Trinity's operating ROA in the current year falls below the 2019 level of 4.33%, suggesting a decline in asset productivity over the past three years. It is important for the company to closely monitor this trend and assess the factors contributing to the fluctuation in operating ROA to ensure sustained profitability and efficient asset utilization in the future.
Peer comparison
Dec 31, 2023