Trex Company Inc (TREX)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,959 | 4,644 | 4,226 | 3,916 | 12,325 | 5,885 | 16,648 | 115,188 | 141,053 | 54,042 | 5,470 | 8,221 | 121,701 | 20,081 | 12,237 | 5,339 | 148,833 | 133,282 | 106,084 | 7,907 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.02 | 0.03 | 0.01 | 0.01 | 0.04 | 0.03 | 0.12 | 0.81 | 1.59 | 0.35 | 0.03 | 0.03 | 1.14 | 0.18 | 0.11 | 0.05 | 1.89 | 1.52 | 1.30 | 0.07 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,959K
+ $—K)
÷ $91,062K
= 0.02
The cash ratio of TREX Co., Inc. has fluctuated over the past eight quarters, indicating changes in the company's liquidity position. An increasing trend in the cash ratio suggests improved liquidity and the ability to cover short-term obligations with available cash.
In Q1 2022, the cash ratio was notably high at 0.96, indicating that the company held a significant amount of cash relative to its current liabilities. This suggests strong liquidity and a safety net to meet short-term financial commitments.
However, there was a substantial decline in the cash ratio in subsequent quarters, reaching a low of 0.03 in Q1 2023. This significant drop could potentially signal challenges in managing short-term liquidity or increased utilization of cash for other purposes.
In Q4 2023, the cash ratio improved to 0.16, indicating a partial recovery in liquidity compared to the previous quarters. While still below the levels seen in Q1 2022, this uptick suggests efforts to enhance liquidity management or potentially more conservative use of cash resources.
Overall, the fluctuation in TREX Co., Inc.'s cash ratio highlights the importance of monitoring liquidity levels and cash management practices to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023