Trex Company Inc (TREX)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,292 | 12,838 | 1,172 | 3,053 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 88,356 | 140,060 | 270,037 | 373,470 | 50,747 | 200,909 | 281,618 | 316,706 | 122,036 | 89,929 | 178,978 | 201,643 | 151,502 | 265,560 | 271,245 | 309,527 | 114,571 | 253,416 | 249,735 | 241,755 |
| Total current liabilities | US$ in thousands | 342,477 | 251,218 | 244,401 | 369,191 | 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 |
| Quick ratio | 0.26 | 0.61 | 1.11 | 1.02 | 0.58 | 1.13 | 0.89 | 0.72 | 0.46 | 0.53 | 1.41 | 2.22 | 3.30 | 2.05 | 1.61 | 1.35 | 2.22 | 2.48 | 2.34 | 2.11 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,292K
+ $—K
+ $88,356K)
÷ $342,477K
= 0.26
The quick ratio of Trex Company Inc has fluctuated over the reporting periods, indicating changes in the company's liquidity position. The quick ratio was consistently above 2 in the earlier periods, reflecting a strong ability to meet short-term obligations using its most liquid assets. However, there was a significant decline in the quick ratio in the first quarter of 2021, dropping to 1.35, which may suggest a potential liquidity strain or a shift in asset composition.
Subsequently, the quick ratio improved in the following quarters but fluctuated within a range of 1 to 2. The ratio peaked at 3.30 at the end of December 2021, indicating a temporary surge in liquidity. However, the quick ratio declined sharply in the next reporting periods, notably reaching its lowest point of 0.26 by the end of December 2024, signifying a potential decrease in the company's ability to cover its short-term liabilities with its quick assets.
Overall, the trend in Trex Company Inc's quick ratio demonstrates fluctuations in liquidity levels over time, highlighting the importance of monitoring changes in the company's ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2024