Trex Company Inc (TREX)
Total asset 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 |
| Total assets | US$ in thousands | 1,324,300 | 932,885 | 933,705 | 920,321 | 770,492 |
| Total asset turnover | 0.87 | 1.17 | 1.17 | 1.30 | 1.14 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,148,820K ÷ $1,324,300K
= 0.87
Trex Company Inc's total asset turnover ratio has shown fluctuations over the years. The ratio was 1.14 as of December 31, 2020, indicating that the company generated $1.14 in sales for every dollar of assets. It improved to 1.30 by December 31, 2021, signaling more efficient asset utilization to generate revenue. However, in the subsequent years, the total asset turnover ratio decreased to 1.17 both in 2022 and 2023, suggesting a slight decline in the company's ability to generate sales from its assets.
The most significant change occurred by December 31, 2024, with a noticeable drop in the total asset turnover ratio to 0.87. This decrease indicates that the company's asset utilization efficiency decreased substantially, which could be a cause for concern. It is essential for Trex Company Inc to closely monitor and manage its asset turnover ratio to ensure optimal utilization of assets in generating revenue.
Peer comparison
Dec 31, 2024