Trex Company Inc (TREX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 932,885 | 996,812 | 1,069,820 | 1,133,120 | 933,705 | 841,898 | 887,294 | 972,396 | 920,321 | 953,451 | 898,820 | 900,290 | 770,492 | 718,235 | 670,990 | 630,856 | 592,239 | 570,770 | 536,198 | 535,645 |
| Operating ROA | 29.61% | 26.35% | 18.29% | 18.42% | 26.43% | 31.19% | 38.46% | 31.45% | 29.92% | 31.79% | 29.14% | 26.99% | 30.32% | 30.87% | 32.76% | 32.36% | 31.78% | 30.52% | 29.51% | 31.39% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $276,205K ÷ $932,885K
= 29.61%
The operating return on assets (operating ROA) for TREX Co., Inc. has shown some fluctuations in recent quarters. In Q4 2023, the operating ROA was 29.61%, a slight increase from the previous quarter's 27.90%. However, this is lower compared to the same quarter in the prior year, where the operating ROA was 28.08%.
Looking further back, the trend indicates a decline in operating ROA, with Q3 2022 showing a notably higher figure of 43.59% and a consecutive decrease until Q4 2023. This may indicate a potential challenge in maintaining profitability relative to the company's asset base.
Overall, a consistent analysis of operating ROA over multiple periods is essential to understand the company's efficiency in generating operating income relative to its total assets. It would be beneficial to further investigate the factors contributing to the fluctuations in operating ROA to assess the company's financial performance comprehensively.
Peer comparison
Dec 31, 2023