Trinity Industries Inc (TRN)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 6.76 | 8.59 | 8.62 | 8.00 | 5.00 |
Trinity Industries Inc's solvency ratios reflect a strong financial position with consistently low debt levels over the years. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 from December 31, 2020, through December 31, 2024, indicating that the company's total debt is negligible compared to its assets, capital, and equity.
The Financial leverage ratio, which measures the extent to which the company relies on debt financing, shows a decreasing trend from 8.00 in 2021 to 6.76 in 2024. This suggests that Trinity Industries Inc has been reducing its reliance on debt to finance its operations over the years.
Overall, the solvency ratios indicate that Trinity Industries Inc has a strong financial position with minimal debt levels, which bodes well for its ability to meet its financial obligations and withstand economic downturns.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 1.81 | 1.56 | 0.87 | 0.91 | -1.51 |
To analyze Trinity Industries Inc's interest coverage, we will look at the ratio of earnings before interest and taxes (EBIT) to interest expense over the years provided in the data.
- As of December 31, 2020, the interest coverage ratio was -1.51. This indicates that the company's EBIT was not sufficient to cover its interest expenses, suggesting possible financial distress.
- By the end of December 31, 2021, the interest coverage ratio improved to 0.91. However, it still remains below 1, indicating that the company's EBIT is slightly lower than its interest expenses.
- For December 31, 2022, the interest coverage ratio slightly decreased to 0.87. This suggests that the company's ability to cover its interest expenses with its earnings was further strained.
- As of December 31, 2023, the interest coverage ratio improved significantly to 1.56. This indicates that the company's EBIT has improved enough to cover its interest expenses adequately.
- Finally, by December 31, 2024, the interest coverage ratio further improved to 1.81. This shows that the company's ability to cover its interest expenses with its earnings continued to strengthen.
Overall, Trinity Industries Inc's interest coverage ratio has shown fluctuations over the years, starting from a negative position to reaching a more stable and healthier level in recent years. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial health and risk management.