Trex Company Inc (TREX)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,148,820 | 1,091,690 | 1,090,750 | 1,197,010 | 881,886 |
| Receivables | US$ in thousands | 88,356 | 50,747 | 122,036 | 151,502 | 114,571 |
| Receivables turnover | 13.00 | 21.51 | 8.94 | 7.90 | 7.70 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,148,820K ÷ $88,356K
= 13.00
The receivables turnover ratio for Trex Company Inc has shown a generally increasing trend over the past five years. In December 2020, the ratio stood at 7.70, indicating that the company collected its accounts receivable approximately 7.70 times during that year. This ratio increased to 8.94 by December 2022, suggesting an improvement in the efficiency of Trex's accounts receivable management.
However, there was a significant spike in the receivables turnover ratio to 21.51 by December 2023, reflecting a substantial increase in the frequency of collections relative to the level of receivables during that period. This sudden surge may be attributed to various factors such as changes in sales terms, credit policies, or collection efforts.
In the most recent year, December 2024, the receivables turnover ratio decreased to 13.00, indicating a reduction in the efficiency of collecting accounts receivable compared to the previous year. This decline could be due to an increase in credit sales volume, changes in customer payment patterns, or other operational factors affecting receivables management.
Overall, the increasing trend in the receivables turnover ratio from 2020 to 2023 followed by a decrease in 2024 suggests that Trex Company Inc has made efforts to enhance its accounts receivable collection efficiency, although there may be fluctuations in performance from year to year that warrant further examination and analysis.
Peer comparison
Dec 31, 2024