Trex Company Inc (TREX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,292 | 1,959 | 12,325 | 141,053 | 121,701 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 342,477 | 91,062 | 290,599 | 88,702 | 106,353 |
| Cash ratio | 0.00 | 0.02 | 0.04 | 1.59 | 1.14 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,292K
+ $—K)
÷ $342,477K
= 0.00
The cash ratio of Trex Company Inc has fluctuated over the past five years. As of December 31, 2020, the cash ratio stood at 1.14, indicating that the company had $1.14 in cash and cash equivalents for every $1 of current liabilities. This ratio improved significantly by December 31, 2021, reaching 1.59, suggesting a stronger liquidity position.
However, there was a sharp decline in the cash ratio by December 31, 2022, dropping to a mere 0.04. This substantial decrease may raise concerns about the company's ability to cover its short-term obligations with its available cash resources. The situation worsened further by December 31, 2023, with the cash ratio falling to 0.02, indicating a significant liquidity strain.
By December 31, 2024, the cash ratio plummeted to 0.00, signaling a critical liquidity issue where the company had no cash on hand to cover its current liabilities. This downward trend in the cash ratio over the past years highlights potential challenges for Trex Company Inc in meeting its short-term financial obligations solely through cash and cash equivalents.
Peer comparison
Dec 31, 2024