Trex Company Inc (TREX)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,148,955 | 1,177,946 | 1,248,794 | 1,227,557 | 1,092,772 | 1,073,190 | 957,092 | 988,224 | 1,090,705 | 1,218,011 | 1,365,421 | 1,290,639 | 1,197,050 | 1,121,376 | 1,017,204 | 926,340 | 881,755 | 818,241 | 781,826 | 767,561 |
| Property, plant and equipment | US$ in thousands | 922,868 | 852,912 | 774,009 | 729,993 | 709,402 | 671,035 | 645,656 | 617,503 | 589,892 | 536,359 | 505,395 | 472,525 | 460,365 | 424,974 | 404,990 | 378,167 | 336,537 | 260,519 | 224,909 | 193,099 |
| Fixed asset turnover | 1.24 | 1.38 | 1.61 | 1.68 | 1.54 | 1.60 | 1.48 | 1.60 | 1.85 | 2.27 | 2.70 | 2.73 | 2.60 | 2.64 | 2.51 | 2.45 | 2.62 | 3.14 | 3.48 | 3.97 |
December 31, 2024 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,148,955K ÷ $922,868K
= 1.24
The fixed asset turnover ratio of Trex Company Inc has shown a declining trend over the past few years, indicating a decrease in the efficiency of the company in generating sales revenue relative to its investment in fixed assets.
From March 31, 2020, where the ratio was 3.97, there has been a consistent decline in the ratio, reaching 1.24 by December 31, 2024. This implies that for each dollar invested in fixed assets, the company generated $1.24 in sales by the end of 2024.
The decreasing trend in fixed asset turnover may suggest potential issues such as underutilization of fixed assets, inefficient asset management, or declining sales performance. It is essential for Trex Company Inc to address these issues to improve its operational efficiency and ensure better utilization of its fixed assets to generate higher sales revenue.
Peer comparison
Dec 31, 2024