Trex Company Inc (TREX)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,148,955 | 1,177,946 | 1,248,794 | 1,227,557 | 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 |
| Receivables | US$ in thousands | 88,356 | 140,060 | 270,037 | 373,470 | 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 |
| Receivables turnover | 13.00 | 8.41 | 4.62 | 3.29 | 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 |
December 31, 2024 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,148,955K ÷ $88,356K
= 13.00
The receivables turnover ratio of Trex Company Inc has shown fluctuations over the past few quarters. The ratio indicates how efficiently the company is able to collect its accounts receivable during a specific period. A higher ratio is generally seen as positive as it implies that the company is able to collect its outstanding receivables more quickly.
Looking at the trend, we see that the receivables turnover for Trex Company Inc was relatively stable around the 3 to 4 range from March 2020 to June 2021. However, there was a significant increase in the ratio in December 2021, reaching 7.90, which could indicate the company improved its collection efforts during that period.
Subsequently, the ratio fluctuated but generally trended upward, peaking at 21.53 in December 2023. Such a high ratio suggests that the company was extremely efficient in collecting its receivables at that time.
However, the ratio decreased in the following periods, dropping to 13.00 in December 2024. This could indicate that the company faced challenges in collecting its receivables efficiently during that period.
Overall, while the receivables turnover ratio of Trex Company Inc has shown variability, it is important to closely monitor this metric to ensure the company's effective management of its accounts receivable and cash flow.
Peer comparison
Dec 31, 2024