Trex Company Inc (TREX)
Working capital 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 current assets | US$ in thousands | 318,908 | 352,718 | 433,814 | 513,366 | 172,254 | 273,067 | 369,444 | 459,483 | 286,842 | 245,400 | 319,249 | 437,162 | 401,054 | 413,020 | 376,951 | 410,082 | 321,997 | 342,900 | 331,084 | 321,879 |
| Total current liabilities | US$ in thousands | 342,477 | 251,218 | 244,401 | 369,191 | 91,062 | 182,306 | 322,797 | 447,765 | 290,599 | 180,675 | 138,823 | 143,020 | 88,702 | 156,008 | 171,556 | 235,625 | 106,353 | 110,109 | 111,769 | 116,950 |
| Working capital turnover | — | 11.61 | 6.59 | 8.51 | 13.46 | 11.82 | 20.52 | 84.33 | — | 18.82 | 7.57 | 4.39 | 3.83 | 4.36 | 4.95 | 5.31 | 4.09 | 3.51 | 3.56 | 3.75 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,148,955K ÷ ($318,908K – $342,477K)
= —
The working capital turnover ratio of Trex Company Inc has fluctuated over the years, indicating changes in the company's efficiency in utilizing its working capital. The ratio was relatively stable around 3.5 to 4 in the period from March 2020 to September 2021, suggesting that the company was generating revenue roughly 3.5 to 4 times per year based on its working capital.
However, there was a notable increase in the ratio in the following quarters, reaching a peak of 84.33 in March 2023. This significant spike may indicate a more effective management of working capital or an increase in sales efficiency during that period.
Subsequently, the ratio decreased but remained relatively high in the range of 6 to 20 in the quarters until September 2024, suggesting continued efficiency in generating revenue relative to working capital.
The absence of data for the working capital turnover ratio in some quarters, marked with "—", makes it challenging to assess the trend accurately over the entire period. It is essential for investors and analysts to monitor this ratio continuously to evaluate the company's operational efficiency and financial health.
Peer comparison
Dec 31, 2024