Trex Company Inc (TREX)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 34.18 | 42.35 | 37.09 | 16.77 | 36.62 | |
| Number of days of payables | days | 10.68 | 8.62 | 9.84 | 21.77 | 9.97 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 34.18
= 10.68
The number of days of payables for TREX Co., Inc. has fluctuated over the past five years. In 2023, the number of days of payables was 13.61 days, showing an increase from the previous year. This indicates that the company took longer to pay its suppliers in 2023 compared to 2022.
In 2022, the number of days of payables was 10.36 days, which was lower compared to 2021. This suggests that the company managed to improve its payable turnover efficiency by reducing the number of days it took to settle its payables in 2022.
In 2021, the number of days of payables was 12.32 days, which was lower compared to 2020 when it stood at 27.04 days. This significant decrease in 2021 compared to 2020 shows a marked improvement in the company's payables management efficiency, as it took less time to pay its suppliers.
In 2020, the number of days of payables was notably high at 27.04 days, indicating that the company was taking relatively longer to settle its payables during that period.
In 2019, the number of days of payables was 12.66 days, similar to 2021, suggesting that the company had consistent payables management practices during these two years.
Overall, monitoring the trend in the number of days of payables provides insights into TREX Co., Inc.'s ability to manage its accounts payable effectively, optimize working capital, and maintain good supplier relationships. By analyzing this metric over time, stakeholders can assess the company's liquidity, financial health, and operational efficiency.
Peer comparison
Dec 31, 2023