Trex Company Inc (TREX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 305,673 | 276,204 | 246,735 | 275,376 | 233,635 |
| Total assets | US$ in thousands | 1,324,300 | 932,885 | 933,705 | 920,321 | 770,492 |
| Operating ROA | 23.08% | 29.61% | 26.43% | 29.92% | 30.32% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $305,673K ÷ $1,324,300K
= 23.08%
Operating ROA for Trex Company Inc has shown a declining trend over the years, dropping from 30.32% as of December 31, 2020, to 23.08% as of December 31, 2024. This decrease indicates that the company's operating performance in generating profits from its assets has weakened over the period under consideration. It is important for Trex Company Inc to further analyze the factors contributing to this decline and implement strategies to improve its operating ROA in order to enhance its overall financial health and efficiency in utilizing its assets for profitability.
Peer comparison
Dec 31, 2024
Company name
Symbol
Operating ROA
Trex Company Inc
TREX
23.08%
Koppers Holdings Inc
KOP
10.63%
Louisiana-Pacific Corporation
LPX
20.63%