Trex Company Inc (TREX)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 276,199 | 260,099 | 192,353 | 206,816 | 246,764 | 262,683 | 341,438 | 305,857 | 275,438 | 303,308 | 262,347 | 243,470 | 234,680 | 223,255 | 221,876 | 206,149 | 189,702 | 175,564 | 159,098 | 168,591 |
| Revenue (ttm) | US$ in thousands | 1,092,772 | 1,073,190 | 957,092 | 988,224 | 1,090,705 | 1,218,011 | 1,365,421 | 1,290,639 | 1,197,050 | 1,121,376 | 1,017,204 | 926,340 | 881,755 | 818,241 | 781,826 | 767,561 | 746,138 | 721,337 | 692,644 | 692,513 |
| Pretax margin | 25.28% | 24.24% | 20.10% | 20.93% | 22.62% | 21.57% | 25.01% | 23.70% | 23.01% | 27.05% | 25.79% | 26.28% | 26.62% | 27.28% | 28.38% | 26.86% | 25.42% | 24.34% | 22.97% | 24.34% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $276,199K ÷ $1,092,772K
= 25.28%
TREX Co., Inc. has demonstrated varying pretax margin figures over the past eight quarters. The pretax margin is a key profitability metric that indicates the company's efficiency in generating profits before accounting for taxes. In Q4 2023, the pretax margin stood at 25.23%, showing a positive trend compared to the previous quarter at 23.84%.
Looking at the trend over the past year, we observe some fluctuations in the pretax margin. The highest pretax margin was achieved in Q2 2022 at 25.01%, while the lowest was recorded in Q2 2023 at 19.72%. This variation could indicate changing cost structures, revenue streams, or economic conditions affecting TREX Co., Inc.
It is essential for investors and stakeholders to monitor the pretax margin consistently to gauge the company's operational efficiency and overall financial health. Higher pretax margins suggest better cost management and a stronger ability to generate profits, while declining margins may raise concerns about profitability and operational effectiveness.
Peer comparison
Dec 31, 2023