Trex Company Inc (TREX)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 452,407 | 403,989 | 460,504 | 359,457 | 306,503 |
| Revenue | US$ in thousands | 1,091,690 | 1,090,750 | 1,197,010 | 881,886 | 746,565 |
| Gross profit margin | 41.44% | 37.04% | 38.47% | 40.76% | 41.06% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $452,407K ÷ $1,091,690K
= 41.44%
The gross profit margin of TREX Co., Inc. has displayed some fluctuations over the past five years. In 2023, the company's gross profit margin stood at 41.32%, showing an improvement from the previous year's margin of 36.53%. This increase suggests better cost management or pricing strategies during the year.
Comparing the 2023 margin to those of 2021, 2020, and 2019, it is evident that the company's gross profit margin has been relatively volatile. The margins in these years were 38.47%, 40.81%, and 41.12%, respectively. This inconsistency could indicate variability in the company's cost of goods sold, sales prices, or production efficiencies during this period.
Overall, while the recent increase in the gross profit margin is a positive sign, TREX Co., Inc. may benefit from implementing strategies to stabilize and potentially increase its margin further to enhance profitability in the long term.
Peer comparison
Dec 31, 2023