Trinity Industries (Trinity Industries) Interest Coverage

: 1.66 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Trinity Industries's Operating Income for the three months ended in Dec. 2023 was $112 Mil. Trinity Industries's Interest Expense for the three months ended in Dec. 2023 was $-68 Mil. Trinity Industries's interest coverage for the quarter that ended in Dec. 2023 was 1.66. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Trinity Industries Inc interest coverage is 1.22, which is low.

The historical rank and industry rank for Trinity Industries's Interest Coverage or its related term are showing as below:

TRN' s Interest Coverage Range Over the Past 10 Years
Min: 0.38 Med: 1.54 Max: 6.47
Current: 1.22

TRN's Interest Coverage is ranked worse than
87.1% of 814 companies
in the Transportation industry
Industry Median: 5.64 vs TRN: 1.22

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Trinity Industries Interest Coverage Historical Data

The historical data trend for Trinity Industries's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Trinity Industries Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.66

0.38

0.92

0.88

1.22

Trinity Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																0.90	0.86	1.00	1.35	1.66

Competitive Comparison

For the Railroads subindustry, Trinity Industries's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Trinity Industries Interest Coverage Distribution

For the Transportation industry and Industrials sector, Trinity Industries's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Trinity Industries's Interest Coverage falls into.

Trinity Industries Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Trinity Industries's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Trinity Industries's Interest Expense was $-266 Mil. Its Operating Income was $325 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,754 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	325.2	/	-265.5
	=	1.22

Trinity Industries's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Trinity Industries's Interest Expense was $-68 Mil. Its Operating Income was $112 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,754 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	112.3	/	-67.7
	=	1.66

The higher the ratio, the stronger the company's Financial Strength is.

Trinity Industries (NYSE:TRN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Trinity Industries Interest Coverage Related Terms

Thank you for viewing the detailed overview of Trinity Industries's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Trinity Industries (Trinity Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Trinity Industries Inc (NYSE:TRN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TTA:Germany TTA:Germany

Address

14221 N. Dallas Parkway, Suite 1100, Dallas, TX, USA, 75254-2957

Website

https://www.trin.net

Trinity Industries Inc. sells and leases railroad products and railcar maintenance services in North America. The company operates under the name TrinityRail in three main segments: railcar leasing and management services, which owns railcars and provides fleet management and administration services; rail products, which builds, sells, and modifies freight and tank railcars and their components; and all other, which sells highway products such as guardrail and other highway barriers. Customers include railroads, leasing companies, and shipping companies in the industries of agriculture, construction, consumer products, energy, and chemicals.

Executives

Eric R Marchetto	other: Officer Trinity Rail	14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
Gregory B Mitchell	other: Chief Commercial Officer	14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
Scott M Ewing	officer: EVP & Chief Legal Officer	14221 N DALLAS PARKWAY SUITE 1100, DALLAS TX 75254
Jean Savage	director	14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
Todd Maclin	director	P.O. BOX 619100, DALLAS TX 75261
Biesterfeld Robert C Jr	director	14701 CHARLSON RD, EDEN PRAIRIE MN 55347
Veena M Lakkundi	director	3M COMPANY, 3M CENTER, BLDG 220 09 E-02, ST. PAUL MN 55144-1000
Brian D Madison	other: President, TILC	14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
Valueact Capital Master Fund, L.p.	director, 10 percent owner, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Jason G. Anderson	director	ONE LETTERMAN DRIVE, BUILDING D, FOURTH FLOOR, SAN FRANCISCO CA 94129
John L Adams	officer: Executive Vice President	2525 STEMMONS FREEWAY, DALLAS TX 75207
Melendy E Lovett	director	14221 N DALLAS PARKWAY, SUITE 1100, DALLAS TX 75254
William P Ainsworth	director	510 LAKE COOK ROAD, SUITE 100, DEERFIELD X1 60015
Brandon Boze	director, 10 percent owner, other: See Remarks	ONE LETTERMAN DRIVE, BUILDING D, 4TH FLOOR, SAN FRANCISCO CA 94129
Tyrone Michael Jordan	director	8501 NORTH SCOTTSDALE ROAD, SUITE 100, SCOTTSDALE AZ 85253