Trex Company Inc (TREX)
Payables 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 |
| Payables | US$ in thousands | 61,272 | 61,480 | 59,267 | 49,350 | 23,963 | 31,795 | 32,228 | 23,136 | 19,935 | 21,880 | 57,825 | 61,707 | 24,861 | 45,415 | 42,876 | 39,167 | 38,622 | 33,345 | 28,135 | 28,917 |
| Payables turnover | 13.81 | 14.01 | 15.18 | 18.07 | 34.17 | 25.58 | 23.73 | 33.78 | 42.34 | 43.67 | 17.71 | 15.96 | 37.08 | 18.02 | 17.61 | 17.44 | 16.76 | 17.87 | 19.93 | 19.44 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $845,974K ÷ $61,272K
= 13.81
Trex Company Inc's payables turnover ratio has exhibited fluctuations over the past several periods. The ratio indicates how many times a company pays off its accounts payable during a specific period.
Based on the provided data, the payables turnover ratio ranged from a high of 43.67 for the period ending September 30, 2022, to a low of 13.81 for the period ending December 31, 2024.
A higher payables turnover ratio generally suggests that the company is efficiently managing its payables by paying them off more quickly. On the other hand, a lower ratio may indicate that the company is taking longer to pay off its suppliers, which could potentially strain supplier relationships.
Overall, monitoring the trend of the payables turnover ratio can provide insights into the company's liquidity, efficiency in managing working capital, and relationships with its suppliers. It is important for Trex Company Inc to assess the reasons behind the fluctuations in the payables turnover ratio and take necessary steps to optimize its payables management for sustained financial health.
Peer comparison
Dec 31, 2024