Trinity Industries Inc (TRN)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,542,300 | 387,500 | 5,281,900 | 5,254,800 | 5,064,600 |
| Total assets | US$ in thousands | 8,906,500 | 8,724,300 | 8,235,900 | 8,701,800 | 8,701,400 |
| Debt-to-assets ratio | 0.62 | 0.04 | 0.64 | 0.60 | 0.58 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,542,300K ÷ $8,906,500K
= 0.62
Trinity Industries, Inc.'s debt-to-assets ratio has been gradually increasing over the past five years, reflecting a higher proportion of debt relative to assets within the company's capital structure. The ratio has risen from 0.56 in 2019 to 0.65 in 2023. This trend suggests that Trinity Industries has been relying more on debt financing to fund its operations and growth initiatives.
While a higher debt-to-assets ratio may indicate increased financial leverage, it also implies a higher level of financial risk for the company. Trinity Industries should be cautious in managing its debt levels to ensure it remains sustainable and can meet its debt obligations in the long term. It is essential for the company to closely monitor its debt levels and assess its ability to generate sufficient cash flows to service its debt obligations. Regularly reviewing and adjusting the capital structure to maintain a healthy balance between debt and assets will be crucial for Trinity Industries to support its long-term financial health and stability.
Peer comparison
Dec 31, 2023