Trinity Industries, Inc. — Earnings Quality Grade F
TRN · Industrials
Major red flags
Screening Summary
Management Signals
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO surged by 21 days (45 → 66)
AR outpaced revenue for 2 consecutive years
Revenue -30.0%, CFFO -37.3%. Cash follows revenue
Expense Quality
Inventory growth -1.5% far exceeds COGS -34.3%, margin rising. Fraud signal
CapEx growth 33.4% is >2x revenue growth -30.0%
SG&A/Gross Profit = 37.4%. Normal
Gross margin 26.6%, change +4.9pp. Stable
Cash Flow Quality
CFFO/NI = 1.42. Profits backed by cash
FCF < 50% of Net Income for 3 years
Accruals ratio = -1.3%. Low accruals
Cash $0.2B covers only 4% of debt $5.4B
Balance Sheet Health
Goodwill+Intangibles $0.2B = 21% of equity. Manageable
Debt/EBITDA = 5.7x (>4x). Interest coverage = 1.3x (<2x). Financial stress
Other assets -4.7% vs revenue -30.0%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions negative for 3 years
Goodwill+Intangibles change 0% YoY. Normal
Manipulation Score
M-Score = -2.53 (< -2.22). Unlikely manipulator
Portfolio monitoring
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Beneish M-Score
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Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25