Trinity Industries Inc (TRN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 8.34 | 8.36 | 8.41 | 8.65 | 8.59 | 8.97 | 9.07 | 8.89 | 8.62 | 8.55 | 8.65 | 8.03 | 8.00 | 6.38 | 6.20 | 5.19 | 5.00 | 4.80 | 4.58 | 4.25 |
Trinity Industries Inc has consistently maintained a strong solvency position as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 over the past several periods. This suggests that the company has minimal debt relative to its assets, capital, and equity, indicating a lower financial risk and a healthy balance sheet.
The financial leverage ratio, which measures the company's total debt relative to its equity, has shown some fluctuation over the periods but has generally remained within the range of 4.25 to 9.07. Despite the fluctuations, the company's financial leverage ratio appears to be within a reasonable range and has not shown any concerning trends that would raise red flags regarding its solvency.
Overall, based on the solvency ratios provided, Trinity Industries Inc appears to have a stable and healthy financial position with minimal debt levels, indicating good financial health and a strong ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. A ratio below 1 indicates that the company is not generating enough earnings to cover its interest expenses.
Based on the provided data for Trinity Industries Inc's interest coverage ratio from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over this period. The ratio started at a concerning level of 1.57 on March 31, 2020, and subsequently dipped into negative territory for several quarters, indicating that the company was struggling to cover its interest obligations with its earnings.
However, there seems to be an improvement in the interest coverage ratio in the later quarters, with the ratio gradually increasing and stabilizing above 1. This suggests that Trinity Industries Inc has been able to enhance its earnings sufficiently to cover its interest expenses more comfortably. By the end of December 31, 2024, the interest coverage ratio stood at a healthy level of 1.71, indicating a stronger ability to meet its interest obligations.
Overall, while Trinity Industries Inc faced challenges with its interest coverage in the past, there are signs of improvement in its financial health as reflected in the more recent quarters. Investors and stakeholders should continue monitoring this ratio to ensure the company's sustainability and financial stability.