Trex Company Inc (TREX)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 452,407 | 447,262 | 362,575 | 363,504 | 403,988 | 456,677 | 538,719 | 499,615 | 460,504 | 434,716 | 391,430 | 365,562 | 359,457 | 338,328 | 335,795 | 326,834 | 306,503 | 295,096 | 279,875 | 287,546 |
| Revenue (ttm) | US$ in thousands | 1,092,772 | 1,073,190 | 957,092 | 988,224 | 1,090,705 | 1,218,011 | 1,365,421 | 1,290,639 | 1,197,050 | 1,121,376 | 1,017,204 | 926,340 | 881,755 | 818,241 | 781,826 | 767,561 | 746,138 | 721,337 | 692,644 | 692,513 |
| Gross profit margin | 41.40% | 41.68% | 37.88% | 36.78% | 37.04% | 37.49% | 39.45% | 38.71% | 38.47% | 38.77% | 38.48% | 39.46% | 40.77% | 41.35% | 42.95% | 42.58% | 41.08% | 40.91% | 40.41% | 41.52% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $452,407K ÷ $1,092,772K
= 41.40%
To analyze TREX Co., Inc.'s gross profit margin, we observe fluctuations over the past eight quarters. The gross profit margin indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the company's efficiency in production and pricing strategies.
In Q4 2023, the gross profit margin increased to 41.32% from the previous quarter's 40.99%. This improvement may imply enhanced cost control measures or potentially favorable pricing dynamics. Comparing Q4 2023 to the same period in the prior year, there was a notable elevation as the margin rose from 36.53% in Q4 2022 to 41.32% in Q4 2023, signifying a positive trend in profitability.
In Q2 2023, there was a significant decline in the gross profit margin to 37.16%, followed by a slight increase in Q3 2023 to 40.99%. This fluctuation could indicate challenges in managing production costs or pricing pressures during that period.
Overall, the company's gross profit margin has displayed variability over the analyzed quarters, with fluctuations possibly stemming from changes in production efficiency, input costs, or pricing strategies. TREX Co., Inc. should continue monitoring and addressing factors impacting its gross profit margin to sustain and improve profitability in the future.
Peer comparison
Dec 31, 2023