Trex Company Inc (TREX)
Total asset 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 |
| Total assets | US$ in thousands | 1,324,300 | 1,267,220 | 1,269,930 | 1,292,960 | 932,885 | 996,812 | 1,069,820 | 1,133,120 | 933,705 | 841,898 | 887,294 | 972,396 | 920,321 | 953,451 | 898,820 | 900,290 | 770,492 | 718,235 | 670,990 | 630,856 |
| Total asset turnover | 0.87 | 0.93 | 0.98 | 0.95 | 1.17 | 1.08 | 0.89 | 0.87 | 1.17 | 1.45 | 1.54 | 1.33 | 1.30 | 1.18 | 1.13 | 1.03 | 1.14 | 1.14 | 1.17 | 1.22 |
December 31, 2024 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,148,955K ÷ $1,324,300K
= 0.87
Total asset turnover is a key financial ratio that measures a company's efficiency in generating sales revenue from its total assets. It indicates how well the company utilizes its assets to generate sales.
Analyzing Trex Company Inc's total asset turnover based on the provided data shows some fluctuations over the years. The ratio ranged from a high of 1.54 in June 30, 2022, to a low of 0.87 in March 31, 2024, and December 31, 2024.
A higher total asset turnover ratio signifies that the company is generating more revenue per dollar of assets, indicating better asset utilization efficiency. Conversely, a lower ratio suggests that the company is less efficient in using its assets to generate sales.
Trex Company Inc's total asset turnover peaked in June 30, 2022, and March 31, 2022, at 1.54 and 1.33, respectively, indicating efficient management of assets to generate sales during those periods. However, the ratio declined in subsequent periods, notably dropping to 0.87 in December 31, 2024, which could indicate a decrease in asset utilization efficiency.
It is important for Trex Company Inc to closely monitor its total asset turnover ratio to ensure optimal utilization of assets in generating revenue. Fluctuations in this ratio could indicate changes in the company's operating efficiency and effectiveness in managing and leveraging its asset base.
Peer comparison
Dec 31, 2024