Trinity Industries Inc (TRN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,906,500 | 8,724,300 | 8,235,900 | 8,701,800 | 8,701,400 |
| Total stockholders’ equity | US$ in thousands | 1,037,100 | 1,012,400 | 1,029,800 | 1,738,800 | 2,030,100 |
| Financial leverage ratio | 8.59 | 8.62 | 8.00 | 5.00 | 4.29 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,906,500K ÷ $1,037,100K
= 8.59
Trinity Industries, Inc.'s financial leverage ratio has exhibited fluctuations over the past five years. The ratio stood at 8.59 in 2023, slightly lower than the previous year's ratio of 8.62. The company experienced an increase in leverage from 2021 to 2022, where the ratio rose from 8.00 to 8.62.
Notably, Trinity's leverage ratio has shown significant growth since 2020, when it was at 5.00, indicating a more conservative financial structure at that time. The most substantial increase in leverage occurred between 2019 and 2020, with the ratio jumping from 4.29 to 5.00.
The upward trend in Trinity Industries' financial leverage ratio in recent years suggests an increasing reliance on debt to finance operations and investments. Investors and analysts may want to closely monitor the company's debt levels and ability to service its obligations, as higher leverage can increase financial risk and impact profitability and liquidity.
Peer comparison
Dec 31, 2023