Trex Company Inc (TREX)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 276,205 | 262,702 | 195,690 | 208,732 | 246,736 | 262,548 | 341,293 | 305,841 | 275,378 | 303,109 | 261,950 | 242,989 | 233,635 | 221,707 | 219,792 | 204,135 | 188,199 | 174,194 | 158,250 | 168,113 |
| 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 |
| Operating profit margin | 25.28% | 24.48% | 20.45% | 21.12% | 22.62% | 21.56% | 25.00% | 23.70% | 23.00% | 27.03% | 25.75% | 26.23% | 26.50% | 27.10% | 28.11% | 26.60% | 25.22% | 24.15% | 22.85% | 24.28% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $276,205K ÷ $1,092,772K
= 25.28%
TREX Co., Inc.'s operating profit margin has displayed fluctuations over the past quarters. In Q4 2023, the operating profit margin stood at 25.23%, slightly lower than in the previous quarter when it was 25.49%. Despite this decrease, the company maintained a strong margin above 20% for the fifth consecutive quarter, indicating efficient cost management and effective operational performance.
Comparing the latest data to the same quarter a year ago, Q4 2022, there has been a slight decline from 23.70% to 25.23% in Q4 2023. This suggests a relatively positive trend in profitability over the year, although the recent decrease demands attention to ascertain the underlying reasons.
Additionally, examining the historical data reveals a peak in operating profit margin in Q2 2022 at 28.33%, followed by a gradual decline in subsequent quarters. Despite this downward trend, the margins have generally remained favorable above 20%, showcasing consistent profitability performance for the company in the recent past.
Overall, TREX Co., Inc. has maintained a healthy operating profit margin, hinting at effective cost control and operational efficiency. Analyzing this metric over time provides insights into the company's financial health and management's ability to generate profits from its core business activities.
Peer comparison
Dec 31, 2023