Trex Company Inc (TREX)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 845,974 | 861,420 | 899,480 | 891,685 | 818,832 | 813,260 | 764,908 | 781,577 | 844,083 | 955,562 | 1,024,217 | 985,016 | 921,775 | 818,369 | 755,158 | 683,171 | 647,396 | 595,810 | 560,774 | 562,236 |
| Inventory | US$ in thousands | 207,282 | 187,935 | 148,858 | 123,885 | 107,089 | 60,384 | 74,007 | 127,784 | 141,355 | 132,115 | 100,872 | 98,176 | 83,753 | 73,636 | 77,232 | 75,012 | 68,238 | 51,581 | 49,649 | 58,716 |
| Inventory turnover | 4.08 | 4.58 | 6.04 | 7.20 | 7.65 | 13.47 | 10.34 | 6.12 | 5.97 | 7.23 | 10.15 | 10.03 | 11.01 | 11.11 | 9.78 | 9.11 | 9.49 | 11.55 | 11.29 | 9.58 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $845,974K ÷ $207,282K
= 4.08
The inventory turnover ratio measures how efficiently a company is managing its inventory by showing how many times the inventory is sold and replaced over a specific period.
For Trex Company Inc, the inventory turnover has fluctuated over the years, ranging from a high of 13.47 in September 2023 to a low of 4.08 in December 2024. Generally, a higher inventory turnover indicates that the company is selling its products quickly and efficiently.
A closer look at the data reveals that there are some periods where the inventory turnover was relatively stable, such as from June 2020 to March 2021, hovering around the 9 to 11 range. However, there are significant drops in the inventory turnover in the latter half of 2022 and 2024, indicating potential inventory management issues during those periods.
Overall, analyzing the inventory turnover for Trex Company Inc provides insights into the company's inventory management efficiency and helps assess how effectively it is selling its products and managing its working capital.
Peer comparison
Dec 31, 2024
Dec 31, 2024