Trex Company Inc (TREX)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,292 | 1,959 | 12,325 | 141,053 | 121,701 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 88,356 | 50,747 | 122,036 | 151,502 | 114,571 |
| Total current liabilities | US$ in thousands | 342,477 | 91,062 | 290,599 | 88,702 | 106,353 |
| Quick ratio | 0.26 | 0.58 | 0.46 | 3.30 | 2.22 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,292K
+ $—K
+ $88,356K)
÷ $342,477K
= 0.26
Based on the quick ratio data provided for Trex Company Inc, the quick ratio has fluctuated over the years.
On December 31, 2020, the quick ratio was reported at 2.22, indicating the company had $2.22 in liquid assets available to cover each dollar of its current liabilities. This suggests the company had a strong ability to meet its short-term obligations with its liquid assets.
By December 31, 2021, the quick ratio improved significantly to 3.30, signaling a further strengthening of the company's liquidity position. The increase in the quick ratio to 3.30 indicates that the company had $3.30 in quick assets for every dollar of current liabilities.
However, the quick ratio dropped sharply by December 31, 2022, to 0.46, reflecting a significant decline in liquidity. A quick ratio of 0.46 indicates that the company had only $0.46 in liquid assets available to cover each dollar of its current liabilities, raising concerns about its ability to meet short-term obligations.
By December 31, 2023, the quick ratio improved slightly to 0.58, but it still remained below 1. This signifies that the company's liquidity position had improved slightly, but it may still face challenges in meeting its short-term obligations solely through its quick assets.
As of December 31, 2024, the quick ratio fell further to 0.26, indicating a continued decline in liquidity and raising serious concerns about the company's ability to meet its short-term obligations with its available liquid assets.
In summary, the quick ratio trend for Trex Company Inc shows fluctuations in liquidity over the years, with a notable decline in recent years. The company experienced periods of strong liquidity followed by significant drops, leading to a level below 1, which may raise concerns about its short-term financial health and ability to cover current liabilities.
Peer comparison
Dec 31, 2024