Trinity Industries Inc (TRN)

Debt-to-capital 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 stockholders’ equity US$ in thousands 1,037,100 1,012,400 1,029,800 1,738,800 2,030,100
Debt-to-capital ratio 0.84 0.28 0.84 0.75 0.71

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,542,300K ÷ ($5,542,300K + $1,037,100K)
= 0.84

The debt-to-capital ratio of Trinity Industries, Inc. has shown an increasing trend over the past five years, from 0.71 in 2019 to 0.85 in 2023. This indicates that the company's reliance on debt as a source of financing relative to its total capital has been growing steadily.

A higher debt-to-capital ratio may suggest that Trinity Industries, Inc. is taking on more debt to fund its operations or growth initiatives, which could potentially lead to higher financial risk. On the other hand, it could also indicate that the company is efficiently using debt to finance its operations and investments.

Overall, while a rising debt-to-capital ratio can be a cause for concern, it is essential to consider the company's overall financial health, profitability, cash flow generation, and ability to service its debt obligations before drawing any definitive conclusions about its financial stability.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-capital ratio
Trinity Industries Inc
TRN
0.84
Greenbrier Companies Inc
GBX
0.00
Westinghouse Air Brake Technologies Corp
WAB
0.24