Trinity Industries Inc (TRN)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 417,000 | 334,000 | 256,800 | -202,200 | 418,200 |
| Long-term debt | US$ in thousands | 5,542,300 | 387,500 | 5,281,900 | 5,254,800 | 5,064,600 |
| Total stockholders’ equity | US$ in thousands | 1,037,100 | 1,012,400 | 1,029,800 | 1,738,800 | 2,030,100 |
| Return on total capital | 6.34% | 23.86% | 4.07% | -2.89% | 5.89% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $417,000K ÷ ($5,542,300K + $1,037,100K)
= 6.34%
Trinity Industries, Inc.'s return on total capital has exhibited fluctuations over the past five years. In 2023, the return on total capital stood at 4.79%, representing an increase from the previous year's figure of 2.75%. However, it remains below the levels observed in 2019 and 2020 when the company reported returns of 5.45% and 3.89%, respectively. The return on total capital in 2021 was slightly higher than in 2022, coming in at 2.82%.
Overall, Trinity Industries, Inc.'s return on total capital has shown variability in recent years, with a notable uptick in 2023 compared to 2022. It is essential for the company to continue monitoring and improving its return on total capital to drive sustained long-term profitability and efficiency in its capital utilization.
Peer comparison
Dec 31, 2023