Trinity Industries Inc (TRN)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 417,000 | 381,800 | 374,300 | 348,200 | 334,000 | 289,700 | 275,300 | 260,100 | 264,000 | 77,900 | 68,300 | -217,400 | -202,200 | 12,900 | 67,200 | 402,600 | 420,900 | 414,100 | 368,300 | 381,200 |
| Interest expense (ttm) | US$ in thousands | 265,500 | 257,200 | 243,400 | 226,200 | 207,600 | 192,100 | 182,300 | 183,600 | 191,500 | 200,200 | 207,300 | 209,300 | 219,200 | 222,900 | 226,400 | 230,400 | 221,800 | 211,900 | 198,900 | 185,700 |
| Interest coverage | 1.57 | 1.48 | 1.54 | 1.54 | 1.61 | 1.51 | 1.51 | 1.42 | 1.38 | 0.39 | 0.33 | -1.04 | -0.92 | 0.06 | 0.30 | 1.75 | 1.90 | 1.95 | 1.85 | 2.05 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $417,000K ÷ $265,500K
= 1.57
Trinity Industries, Inc.'s interest coverage ratio has shown fluctuations over the past eight quarters. The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income.
In Q4 2023, Trinity Industries, Inc. had an interest coverage ratio of 1.22, indicating that the company generated 1.22 times the amount of operating income to cover its interest expense in that period. This is a positive sign as it suggests that the company's earnings were sufficient to cover its interest payments comfortably.
However, the interest coverage ratio has seen some variability in recent quarters, ranging from a low of 0.78 in Q3 2022 to a high of 1.22 in Q4 2023. The downward trend from Q3 2022 to Q2 2023, where the ratio decreased from 0.78 to 0.93, may raise concerns about the company's ability to meet its interest obligations.
Overall, investors and creditors should closely monitor Trinity Industries, Inc.'s interest coverage ratio to ensure that the company continues to generate enough operating income to cover its interest expenses and maintain financial stability.
Peer comparison
Dec 31, 2023