Trinity Industries Inc (TRN)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 1,037,100 | 1,000,800 | 994,600 | 994,200 | 1,012,400 | 1,005,900 | 997,600 | 1,032,000 | 1,029,800 | 1,331,000 | 1,389,900 | 1,692,400 | 1,738,800 | 1,817,300 | 1,891,300 | 2,116,400 | 2,030,100 | 2,110,600 | 2,178,800 | 2,214,500 |
| Debt-to-equity ratio | 5.34 | 0.79 | 0.80 | 0.39 | 0.38 | 0.38 | 0.39 | 0.39 | 5.13 | 0.32 | 0.31 | 0.25 | 3.02 | 0.22 | 2.58 | 2.28 | 2.49 | 2.33 | 2.19 | 2.06 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,542,300K ÷ $1,037,100K
= 5.34
The debt-to-equity ratio for Trinity Industries, Inc. has been relatively high and stable over the past eight quarters, ranging from 5.07 to 5.86. This indicates that the company relies more on debt financing compared to equity to fund its operations and growth.
While a high debt-to-equity ratio can be a cause for concern as it suggests higher financial leverage and potential risk, it can also mean that the company has been able to access debt financing at favorable terms to support its business activities.
Investors and stakeholders should closely monitor Trinity Industries' ability to service its debt obligations and manage its financial leverage to ensure financial stability and sustainability in the long term. Additionally, any significant changes in the debt-to-equity ratio should be analyzed in conjunction with other financial metrics to gain a comprehensive understanding of the company's overall financial health.
Peer comparison
Dec 31, 2023