Trinity Industries Inc (TRN)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 417,000 | 381,800 | 374,300 | 348,200 | 334,000 | 289,700 | 275,300 | 260,100 | 264,000 | 77,900 | 68,300 | -217,400 | -202,200 | 12,900 | 67,200 | 402,600 | 420,900 | 414,100 | 368,300 | 381,200 |
| Long-term debt | US$ in thousands | 5,542,300 | 793,400 | 796,600 | 389,800 | 387,500 | 381,500 | 389,900 | 406,500 | 5,281,900 | 425,300 | 426,200 | 418,000 | 5,254,800 | 407,400 | 4,885,900 | 4,834,500 | 5,064,600 | 4,911,000 | 4,769,100 | 4,552,400 |
| Total stockholders’ equity | US$ in thousands | 1,037,100 | 1,000,800 | 994,600 | 994,200 | 1,012,400 | 1,005,900 | 997,600 | 1,032,000 | 1,029,800 | 1,331,000 | 1,389,900 | 1,692,400 | 1,738,800 | 1,817,300 | 1,891,300 | 2,116,400 | 2,030,100 | 2,110,600 | 2,178,800 | 2,214,500 |
| Return on total capital | 6.34% | 21.28% | 20.90% | 25.16% | 23.86% | 20.88% | 19.84% | 18.08% | 4.18% | 4.44% | 3.76% | -10.30% | -2.89% | 0.58% | 0.99% | 5.79% | 5.93% | 5.90% | 5.30% | 5.63% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $417,000K ÷ ($5,542,300K + $1,037,100K)
= 6.34%
The return on total capital for Trinity Industries, Inc. has been showing a positive trend over the past eight quarters. In Q4 2023, the return on total capital reached 4.79%, which is an improvement compared to the previous quarters. This indicates that Trinity Industries is becoming more efficient in generating profits from its total capital employed.
The consistent increase in the return on total capital from 2.49% in Q1 2022 to 4.79% in Q4 2023 reflects positively on the company's ability to utilize its capital effectively to generate returns for its shareholders. This improvement suggests that Trinity Industries has been effectively managing its assets and liabilities to maximize profitability.
Overall, the upward trend in the return on total capital for Trinity Industries, Inc. indicates an improvement in the company's financial performance and efficiency in utilizing its capital resources.
Peer comparison
Dec 31, 2023