Trinity Industries Inc (TRN)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 8,906,500 | 8,973,400 | 9,022,000 | 8,839,200 | 8,724,300 | 8,599,100 | 8,624,800 | 8,291,200 | 8,235,900 | 8,495,600 | 8,617,000 | 8,775,500 | 8,701,800 | 8,723,200 | 8,665,400 | 9,002,900 | 8,701,400 | 8,643,100 | 8,575,900 | 8,413,900 |
| Debt-to-assets ratio | 0.62 | 0.09 | 0.09 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.64 | 0.05 | 0.05 | 0.05 | 0.60 | 0.05 | 0.56 | 0.54 | 0.58 | 0.57 | 0.56 | 0.54 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,542,300K ÷ $8,906,500K
= 0.62
The debt-to-assets ratio of Trinity Industries, Inc. has remained relatively stable over the past eight quarters, ranging between 0.63 to 0.65. This ratio indicates that the company finances approximately 63% to 65% of its assets through debt, while the remaining percentage represents the assets financed by equity.
A higher debt-to-assets ratio suggests that the company relies more on debt to finance its operations and expansion, which can be risky due to higher interest payments and potential financial instability. In contrast, a lower ratio indicates a conservative approach with less reliance on debt for funding.
Given the consistent range of the debt-to-assets ratio for Trinity Industries, Inc., it appears that the company has maintained a balanced mix of debt and equity in its capital structure. However, it is important to continue monitoring this ratio to ensure the company's financial health and sustainability in the long term.
Peer comparison
Dec 31, 2023