Trex Company Inc (TREX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.44% | 37.04% | 38.47% | 40.76% | 41.06% |
| Operating profit margin | 25.30% | 22.62% | 23.01% | 26.49% | 25.21% |
| Pretax margin | 25.30% | 22.63% | 23.01% | 26.61% | 25.41% |
| Net profit margin | 18.81% | 16.93% | 17.44% | 19.92% | 19.39% |
TREX Co., Inc. has shown consistency in maintaining healthy profitability ratios over the past five years. The gross profit margin has ranged from 36.53% to 41.32%, indicating the company's ability to efficiently manage production costs and generate profits from its sales.
The operating profit margin has also remained relatively stable, fluctuating between 23.70% and 26.81%. This metric reflects TREX's effectiveness in controlling operating expenses and running its core business operations efficiently.
Furthermore, the company has consistently maintained a strong pretax margin, which varied from 22.32% to 26.64%. This metric highlights TREX's ability to generate profits before accounting for taxes, demonstrating operational efficiency and effective financial management.
In terms of net profit margin, TREX Co., Inc. has shown a similar trend, with ratios ranging from 16.69% to 18.76%. This metric reflects the company's ability to convert its revenues into net profits after accounting for all expenses, including taxes.
Overall, TREX Co., Inc. has demonstrated a strong and stable profitability performance over the years, showcasing its solid operational efficiency and financial management practices.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 29.61% | 26.43% | 29.92% | 30.32% | 31.78% |
| Return on assets (ROA) | 22.02% | 19.77% | 22.68% | 22.79% | 24.44% |
| Return on total capital | 38.54% | 47.60% | 37.98% | 39.70% | 41.90% |
| Return on equity (ROE) | 28.66% | 35.62% | 28.79% | 29.84% | 32.22% |
TREX Co., Inc. has shown consistent profitability over the past five years based on the profitability ratios analyzed.
Operating return on assets (Operating ROA) has ranged between 28.08% to 34.87%, indicating the company's ability to generate earnings from its assets before interest and taxes. The increasing trend from 2021 to 2022 before a slight decrease in 2023 suggests improved operational efficiency.
Return on assets (ROA) has varied between 19.77% to 24.44%, reflecting the company's overall profitability in generating earnings from its total assets. The figures have generally been positive, showcasing the company's ability to generate profits from its assets consistently.
Return on total capital has shown a similar trend, ranging from 35.41% to 44.26%, indicating the company's ability to generate returns for both equity and debt holders. The decreasing trend in 2023 compared to 2022 may be an area for further investigation to understand the impact on capital allocation.
Return on equity (ROE) has ranged between 28.66% to 35.62%, demonstrating the company's ability to generate profits from shareholder equity. The fluctuations in ROE may be influenced by the company's capital structure and business operations over the years.
Overall, TREX Co., Inc.'s profitability ratios suggest strong performance in utilizing assets, generating returns for both equity and total capital providers, and maintaining profitability for shareholders over the years. It would be important to further analyze the company's financial statements and industry trends to gain a deeper understanding of the factors driving these profitability ratios.