Trinity Industries Inc (TRN)

Solvency ratios

	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
Debt-to-assets ratio	0.62	0.09	0.09	0.04	0.04	0.04	0.05	0.05	0.64	0.05	0.05	0.05	0.60	0.05	0.56	0.54	0.58	0.57	0.56	0.54
Debt-to-capital ratio	0.84	0.44	0.44	0.28	0.28	0.27	0.28	0.28	0.84	0.24	0.23	0.20	0.75	0.18	0.72	0.70	0.71	0.70	0.69	0.67
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
Financial leverage ratio	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	4.29	4.10	3.94	3.80

Trinity Industries, Inc. exhibits relatively consistent solvency ratios over the provided quarters. The debt-to-assets ratio hovers around 0.65, indicating that 65% of the company's assets are financed through debt. The debt-to-capital ratio remains stable at 0.85, suggesting that debt contributes to 85% of Trinity Industries' capital structure.

The debt-to-equity ratio varies slightly but generally ranges between 5.46 and 5.86, showing that the company relies heavily on debt financing in comparison to equity. The financial leverage ratio fluctuates within a narrow band, with values between 8.03 and 9.07, indicating that Trinity Industries utilizes a significant amount of debt to fund its operations and investments, amplifying the impact of financial risks on its shareholders' returns.

Overall, the solvency ratios suggest that Trinity Industries maintains a moderate-to-high level of debt leverage to support its operations and growth initiatives. Investors and stakeholders should continue to monitor these ratios to assess the company's ability to meet its debt obligations and manage financial risks effectively.

Coverage ratios

	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
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

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 interest payments on its debt obligations. A higher ratio indicates a more comfortable position to cover interest expenses.

Looking at the data provided, we observe a general upward trend in interest coverage from Q1 2022 to Q4 2023. This indicates an improvement in Trinity Industries' ability to fulfill its interest payment obligations over time. However, it is important to note that the ratios are relatively low, hovering around 1.0, which suggests that the company's earnings are just sufficient to cover its interest expenses.

While the trend is positive, it is worth mentioning that an interest coverage ratio close to 1.0 may signal potential financial risks, as any adverse changes in earnings could impact the company's ability to meet interest obligations. Investors and creditors typically prefer to see a higher interest coverage ratio to ensure a greater margin of safety.

In conclusion, Trinity Industries, Inc. has shown a gradual improvement in its interest coverage ratio over the past quarters, indicating a better ability to meet its interest payments. However, the ratios are at relatively low levels, and the company may need to continue monitoring its financial performance to ensure sustained ability to cover interest expenses.