Trex Company Inc (TREX)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 846,176 | 819,033 | 844,285 | 921,976 | 647,596 |
| Payables | US$ in thousands | 61,272 | 23,963 | 19,935 | 24,861 | 38,622 |
| Payables turnover | 13.81 | 34.18 | 42.35 | 37.09 | 16.77 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $846,176K ÷ $61,272K
= 13.81
The payables turnover ratio for Trex Company Inc has shown varying trends over the past five years.
In 2020, the payables turnover ratio was 16.77, indicating that the company's payables turnover frequency was approximately 16.77 times during that year. The growth in this ratio to 37.09 in 2021 signifies that the company was able to pay off its accounts payable at a much faster rate.
The trend continued to improve in 2022, with a payables turnover ratio of 42.35, indicating an even more efficient management of accounts payable. However, in 2023, the ratio decreased to 34.18, which could suggest a slight slowdown in the company's ability to pay its suppliers promptly.
By the end of 2024, the payables turnover ratio dropped notably to 13.81, signifying a significant decrease in the speed at which the company settles its accounts payable. This might indicate that Trex Company Inc took longer to pay off its suppliers compared to previous years.
Overall, the fluctuation in Trex Company Inc's payables turnover ratio suggests varying degrees of efficiency in managing its accounts payable over the five-year period. Further analysis of the company's financial statements and operational efficiency would help provide a more comprehensive understanding of this trend.
Peer comparison
Dec 31, 2024