Trex Company Inc (TREX)
Working capital 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 current assets | US$ in thousands | 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 | 303,204 | 307,845 | 286,163 | 291,285 |
| Total current liabilities | US$ in thousands | 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 | 78,670 | 87,524 | 81,469 | 106,575 |
| Working capital turnover | 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 | 3.32 | 3.27 | 3.38 | 3.75 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,092,772K ÷ ($172,254K – $91,062K)
= 13.46
The working capital turnover ratio for TREX Co., Inc. fluctuated over the past eight quarters, ranging from a low of 4.39 in Q1 2022 to a high of 85.81 in Q1 2023. This ratio measures the efficiency with which the company utilizes its working capital to generate sales revenue. A higher turnover ratio indicates that the company is effectively managing its working capital to support sales growth.
In Q1 2023, TREX Co., Inc. achieved a remarkably high working capital turnover of 85.81, suggesting that the company was able to generate significant sales revenue relative to its working capital. This indicates strong efficiency in managing its current assets and current liabilities to support its sales operations.
Similarly, in Q2 2023, the working capital turnover ratio remained relatively high at 20.92, demonstrating continued efficiency in utilizing working capital to drive sales growth.
In contrast, the working capital turnover ratios in Q3 and Q4 2023 decreased to 12.02 and 13.48, respectively. While these ratios are still relatively healthy, they represent a slight decline in the efficiency of working capital management compared to the preceding quarters.
Overall, TREX Co., Inc. has shown varying levels of efficiency in utilizing its working capital to support its sales operations over the past eight quarters, with Q1 2023 standing out as a period of exceptionally high efficiency in this regard.
Peer comparison
Dec 31, 2023