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