Trex Company Inc (TREX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,091,690 | 1,090,750 | 1,197,010 | 881,886 | 746,565 |
| Total assets | US$ in thousands | 932,885 | 933,705 | 920,321 | 770,492 | 592,239 |
| Total asset turnover | 1.17 | 1.17 | 1.30 | 1.14 | 1.26 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $1,091,690K ÷ $932,885K
= 1.17
The total asset turnover ratio of TREX Co., Inc. has shown some fluctuations over the past five years. The ratio indicates how efficiently the company is generating sales revenue in relation to its total assets.
In 2023, the total asset turnover ratio decreased slightly to 1.17 from 1.18 in 2022. This suggests that the company generated $1.17 in sales revenue for every $1 of total assets in 2023. Although there was a slight decline, the ratio remains relatively stable.
Comparing to 2021 when the total asset turnover ratio was 1.30, there has been a noticeable decrease in the efficiency of asset utilization in generating sales revenue. Despite this decrease, the company is still able to generate sales efficiently relative to its asset base.
In 2020 and 2019, the total asset turnover ratios were 1.14 and 1.26, respectively. The company's performance in utilizing its assets to generate sales revenue was weaker in 2020 but improved in 2019.
Overall, while there has been some fluctuation in TREX Co., Inc.'s total asset turnover ratio over the past five years, the company has generally maintained the ability to efficiently generate sales revenue in relation to its total assets. It will be important for the company to monitor and potentially improve asset utilization efficiency to sustain and enhance its financial performance in the future.
Peer comparison
Dec 31, 2023