Trex Company Inc (TREX)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 276,199 | 246,826 | 275,437 | 234,634 | 189,702 |
| Revenue | US$ in thousands | 1,091,690 | 1,090,750 | 1,197,010 | 881,886 | 746,565 |
| Pretax margin | 25.30% | 22.63% | 23.01% | 26.61% | 25.41% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $276,199K ÷ $1,091,690K
= 25.30%
The pretax margin of TREX Co., Inc. has exhibited fluctuation over the past five years. In 2023, the pretax margin increased to 25.23% from 22.32% in 2022. This indicates that the company was able to generate more profit before taxes relative to its total revenue in 2023. However, compared to 2020 when the pretax margin was 26.64%, there was a slight decline in profitability in 2023.
It is important to note that despite the variations in pretax margin over the years, TREX Co., Inc. has consistently maintained a pretax margin above 20%, indicating that the company has been efficient in controlling its operating expenses and other costs relative to its revenue. The management should continue to monitor and analyze the factors contributing to these fluctuations to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2023