Trex Company Inc (TREX)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.89 | 1.50 | 1.14 | 1.03 | 0.99 | 1.36 | 2.30 | 3.06 | 4.52 | 2.65 | 2.20 | 1.74 | 3.03 | 3.11 | 2.96 | 2.75 | 3.85 | 3.52 | 3.51 | 2.73 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $172,254K ÷ $91,062K
= 1.89
The current ratio of TREX Co., Inc. has fluctuated over the past eight quarters, ranging from a low of 0.99 in Q4 2022 to a high of 3.06 in Q1 2022. A current ratio above 1 indicates that the company's current assets exceed its current liabilities.
In Q4 2023, the current ratio has improved to 1.89 compared to the previous quarter, Q3 2023, where it was 1.50. This increase suggests that the company may have strengthened its liquidity position by either increasing current assets, decreasing current liabilities, or a combination of both.
However, it's important to note that although the current ratio has improved in Q4 2023, it is still below the levels seen in Q1 and Q2 2022. A current ratio of 1.89 indicates that the company has $1.89 of current assets for every $1 of current liabilities, which may be a concern as a ratio closer to 2 or higher is generally considered healthier for most companies.
Further analysis and monitoring of TREX Co., Inc.'s liquidity position through its current ratio in future quarters will provide a better understanding of the company's ability to meet its short-term obligations and manage its working capital effectively.
Peer comparison
Dec 31, 2023