Trinity Industries Inc (TRN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 468,300 | 465,700 | 434,400 | 383,600 | 324,500 | 265,800 | 226,400 | 205,600 | 181,600 | 187,800 | 227,200 | 232,300 | 240,500 | 61,100 | 42,000 | -312,300 | -281,200 | -56,800 | -28,200 | 362,400 |
| Interest expense (ttm) | US$ in thousands | 273,500 | 274,300 | 275,700 | 272,500 | 265,500 | 257,200 | 243,400 | 226,200 | 207,600 | 192,100 | 182,300 | 183,600 | 191,500 | 200,000 | 206,500 | 208,500 | 218,400 | 222,300 | 226,400 | 230,400 |
| Interest coverage | 1.71 | 1.70 | 1.58 | 1.41 | 1.22 | 1.03 | 0.93 | 0.91 | 0.87 | 0.98 | 1.25 | 1.27 | 1.26 | 0.31 | 0.20 | -1.50 | -1.29 | -0.26 | -0.12 | 1.57 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $468,300K ÷ $273,500K
= 1.71
The interest coverage ratio for Trinity Industries Inc has shown fluctuations over the past few years, ranging from negative values to positive figures. The ratio indicates the company's ability to meet its interest obligations with its operating income.
In the recent periods, Trinity's interest coverage has improved, with values consistently above 1. This suggests that the company's operating income is sufficient to cover its interest expenses. A ratio above 1 indicates that the company is generating enough earnings to comfortably meet its interest payments.
Overall, based on the trend in the interest coverage ratio, Trinity Industries Inc appears to be in a better position to manage its interest obligations compared to previous periods. Investors and creditors may view this positively as it reflects an improved financial stability and ability to service debt. However, it is important to continue monitoring the ratio to ensure sustained financial health and stability.
Peer comparison
Dec 31, 2024