Gross Margin % is calculated as gross profit divided by its revenue. Trinity Industries's Gross Profit for the
three
months ended in Dec. 2023 was $161 Mil. Trinity Industries's Revenue for the
three
months ended in Dec. 2023 was $798 Mil. Therefore, Trinity Industries's Gross Margin % for the quarter that ended in Dec. 2023 was 20.17%.
Warning Sign:
Trinity Industries Inc gross margin has been in long-term decline. The average rate of decline per year is -4.6%.
The historical rank and industry rank for Trinity Industries's Gross Margin % or its related term are showing as below:
TRN'
s Gross Margin % Range Over the Past 10 Years
Min: 17.67 Med: 23.76 Max: 27.16
Current: 17.67
During the past 13 years, the highestGross Margin % of Trinity Industries was 27.16%. The lowest was 17.67%. And the median was 23.76%.
TRN's Gross Margin % is ranked worse than 57.19% of 946
companies
in the Transportation industry
Industry Median: 19.95
vs TRN: 17.67
Trinity Industries had a gross margin of 20.17% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Trinity Industries was -4.60% per year.
Trinity Industries Gross Margin % Historical Data
The historical data trend for Trinity Industries's Gross Margin % 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.
For the Railroads subindustry, Trinity Industries's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Transportation industry and Industrials sector, Trinity Industries's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Trinity Industries's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Trinity Industries had a gross margin of 20.17% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Trinity Industries Gross Margin % Related Terms
Thank you for viewing the detailed overview of Trinity Industries's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Trinity Industries (Trinity Industries) Business Description
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.
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