Trex Company Inc (TREX)
Total asset 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 |
| Total assets | US$ in thousands | 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 | 592,239 | 570,770 | 536,198 | 535,645 |
| Total asset turnover | 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 | 1.26 | 1.26 | 1.29 | 1.29 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,092,772K ÷ $932,885K
= 1.17
The total asset turnover of TREX Co., Inc. has exhibited fluctuations over the past eight quarters. In Q4 2023, the total asset turnover ratio stood at 1.17, which indicates that the company generated $1.17 in sales for every dollar of assets it possessed during that period. This ratio is higher than the previous quarter's ratio of 1.09.
When comparing the most recent data to the same quarter in the previous year, the total asset turnover in Q4 2023 at 1.17 is lower than the value of 1.18 in Q4 2022. This suggests a slight decrease in efficiency in generating sales relative to its assets compared to the same quarter in the prior year.
The trend of total asset turnover ratios over the past eight quarters shows some variability, with the ratio reaching its peak at 1.54 in Q2 2022 and hitting its lowest point at 0.89 in Q1 2023. This fluctuation indicates that the company's ability to utilize its assets to generate sales has been inconsistent during this period.
Overall, while TREX Co., Inc. has shown varying levels of efficiency in utilizing its assets to generate sales over the past eight quarters, it is essential for the company to closely monitor and manage its asset turnover to ensure optimal utilization of resources and improve overall financial performance.
Peer comparison
Dec 31, 2023