Trinity Industries Inc (TRN)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 495,300 | 414,500 | 181,600 | 174,200 | -326,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,307,200 | 1,037,100 | 1,012,400 | 1,029,800 | 1,738,800 |
| Return on total capital | 37.89% | 39.97% | 17.94% | 16.92% | -18.79% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $495,300K ÷ ($—K + $1,307,200K)
= 37.89%
Trinity Industries Inc's return on total capital has exhibited significant variability over the years. The metric stood at -18.79% on December 31, 2020, indicating a negative return on the capital employed by the company. However, the performance improved substantially in the subsequent years, with returns of 16.92% on December 31, 2021, 17.94% on December 31, 2022, 39.97% on December 31, 2023, and 37.89% on December 31, 2024.
The increasing trend in return on total capital from 2020 to 2024 suggests that Trinity Industries Inc has been more effective in generating profits relative to the total capital invested in the business. The positive returns in the latter years indicate improved efficiency in utilizing the company's resources to generate income. Overall, the upward trajectory in return on total capital reflects positively on Trinity Industries Inc's financial performance and capital management strategies.
Peer comparison
Dec 31, 2024