Trex Company Inc (TREX)
Receivables turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,092,772 | 1,073,190 | 957,092 | 988,224 | 1,090,705 | 1,218,011 | 1,365,421 | 1,290,639 | 1,197,050 | 1,121,376 | 1,017,204 | 926,340 | 881,755 | 818,241 | 781,826 | 767,561 | 746,138 | 721,337 | 692,644 | 692,513 |
| Receivables | US$ in thousands | 50,747 | 200,909 | 281,618 | 316,706 | 122,036 | 89,929 | 178,978 | 201,643 | 151,502 | 265,560 | 271,245 | 309,527 | 114,571 | 253,416 | 249,735 | 241,755 | 81,137 | 117,677 | 122,279 | 219,345 |
| Receivables turnover | 21.53 | 5.34 | 3.40 | 3.12 | 8.94 | 13.54 | 7.63 | 6.40 | 7.90 | 4.22 | 3.75 | 2.99 | 7.70 | 3.23 | 3.13 | 3.17 | 9.20 | 6.13 | 5.66 | 3.16 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,092,772K ÷ $50,747K
= 21.53
The receivables turnover for TREX Co., Inc. has shown fluctuations over the past eight quarters. In Q4 2023, the receivables turnover ratio was 21.57, indicating that the company collected its outstanding receivables approximately 21.57 times during the quarter. This is a significant increase compared to the previous quarter, Q3 2023, when the ratio was 5.43.
The rapid increase in receivables turnover from Q3 2023 to Q4 2023 could suggest an improvement in the company's ability to collect outstanding receivables efficiently. However, it would be important to analyze the underlying reasons for this sudden change in the ratio.
Looking at the trend over the past eight quarters, the receivables turnover ratios have been volatile, ranging from lows of 3.17 in Q1 2023 to highs of 21.57 in Q4 2023. This inconsistency may indicate variations in the company's credit policies, customer payment behaviors, or internal collection processes.
Overall, it is essential for TREX Co., Inc. to continue monitoring and analyzing its receivables turnover ratio to ensure effective management of its accounts receivable and maintain healthy cash flow.
Peer comparison
Dec 31, 2023