Trinity Industries Inc (TRN)

Trinity Industries, Inc.'s solvency ratios indicate the company's ability to meet its long-term obligations. The trend in the debt-to-assets ratio has been increasing over the past five years, from 0.56 in 2019 to 0.65 in 2023, indicating a higher proportion of assets financed by debt.

Similarly, the debt-to-capital ratio has shown an upward trend, reaching 0.85 in 2023 from 0.71 in 2019, highlighting an increased reliance on debt in the capital structure. This ratio indicates that 85% of the company's capital comes from debt.

The debt-to-equity ratio has also been escalating steadily over the years, moving from 2.40 in 2019 to 5.55 in 2023. This indicates that the company has been increasingly financing its operations through debt rather than equity, which could pose a higher financial risk.

The financial leverage ratio, which measures the extent to which Trinity Industries, Inc. is using debt to finance its assets, has shown a similar increasing trend, rising from 4.29 in 2019 to 8.59 in 2023. This implies that the company has been employing more debt to generate earnings and grow the business.

Overall, the increasing trend in these solvency ratios suggests that Trinity Industries, Inc. has been taking on more debt relative to its assets, capital, equity, and earnings over the past five years. Investors and creditors should closely monitor these ratios to assess the company's ability to manage its debt levels and meet its long-term financial obligations.

---

Coverage ratios

Trinity Industries, Inc.'s interest coverage ratio has exhibited fluctuating trends over the past five years. The ratio stood at 1.22 in 2023, indicating that the company generated sufficient operating income to cover its interest expenses. However, this value represents a slight improvement compared to the prior year, where the interest coverage was at 0.88, suggesting a higher ability to meet interest obligations in the most recent period.

The interest coverage ratio was 0.91 in 2021, highlighting a concerning situation where the company's operating income was barely enough to cover its interest expenses. This might have raised concerns about the company's financial health and its ability to service its debt commitments.

In 2020, the interest coverage ratio was 1.22, showing a return to a level similar to 2023. This improvement may have reassured investors and creditors about the company's capability to manage its interest payments effectively.

Furthermore, in 2019, Trinity Industries, Inc. had a relatively stronger interest coverage ratio of 1.76, indicating a better ability to cover interest expenses with operating income compared to the subsequent years.

Overall, Trinity Industries, Inc. has experienced fluctuations in its interest coverage ratio over the years, with varying levels of ability to meet interest obligations. It is essential for stakeholders to monitor this ratio to assess the company's financial risk and debt repayment capacity effectively.