Trex Company Inc (TREX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 305,675 | 318,347 | 350,406 | 338,269 | 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 |
| Total assets | US$ in thousands | 1,324,300 | 1,267,220 | 1,269,930 | 1,292,960 | 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 |
| Operating ROA | 23.08% | 25.12% | 27.59% | 26.16% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $305,675K ÷ $1,324,300K
= 23.08%
Operating return on assets (Operating ROA) is a key financial ratio that indicates how efficiently a company generates profits from its assets used in operations. For Trex Company Inc, the Operating ROA has shown fluctuations over the period from March 31, 2020, to December 31, 2024.
The trend in Operating ROA for Trex Company Inc demonstrates a peak of 38.46% on June 30, 2022, indicating a high level of profitability relative to its assets during that period. This could be a result of effective management of operations and resources at that point in time.
However, the Operating ROA decreased to 18.42% on March 31, 2023, hitting a low point in profitability efficiency. This decline may raise concerns about the company's ability to generate profits from its operational assets efficiently during that quarter.
Subsequently, the Operating ROA fluctuated within a range between 18.29% and 31.79% until December 31, 2024. These fluctuations suggest that Trex Company Inc's profitability from its operational assets varied during this period, potentially influenced by factors such as operational performance, asset utilization, and overall market conditions.
Overall, monitoring the Operating ROA can provide valuable insights into Trex Company Inc's operational efficiency and financial performance. It is essential for investors and analysts to consider the trends and fluctuations in this ratio to assess the company's ability to generate profits from its operating assets over time.
Peer comparison
Dec 31, 2024