Trex Company Inc (TREX)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 276,204 | 246,735 | 275,376 | 233,635 | 188,199 |
| Total assets | US$ in thousands | 932,885 | 933,705 | 920,321 | 770,492 | 592,239 |
| Operating ROA | 29.61% | 26.43% | 29.92% | 30.32% | 31.78% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $276,204K ÷ $932,885K
= 29.61%
Operating return on assets (operating ROA) is a crucial financial ratio that indicates the efficiency of TREX Co., Inc. in generating operating income relative to its total assets. Looking at the trend over the past five years, we observe fluctuations in TREX Co., Inc.'s operating ROA.
In 2023, the operating ROA stood at 29.61%, showing a slight increase from 28.08% in 2022. This suggests that the company improved its ability to generate operating income from its assets. However, the 2023 figure is lower than the peak seen in 2021 when the operating ROA was at 34.87%.
While the operating ROA in 2023 is slightly lower than the preceding year, it remains relatively healthy compared to previous years, such as 2020 and 2019, where the ratios were 30.32% and 31.78%, respectively.
Overall, TREX Co., Inc. has demonstrated a consistent ability to generate operating income in relation to its assets over the years, albeit with some variability. It will be important to monitor future trends in operating ROA to assess the company's ongoing operational efficiency and asset utilization.
Peer comparison
Dec 31, 2023