Trex Company Inc (TREX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 42.27% | 42.58% | 43.18% | 42.98% | 41.40% | 41.68% | 37.88% | 36.78% | 37.04% | 37.49% | 39.45% | 38.71% | 38.47% | 38.77% | 38.48% | 39.46% | 40.77% | 41.35% | 42.95% | 42.58% |
| Operating profit margin | 26.60% | 27.03% | 28.06% | 27.56% | 25.28% | 24.48% | 20.45% | 21.12% | 22.62% | 21.56% | 25.00% | 23.70% | 23.00% | 27.03% | 25.75% | 26.23% | 26.50% | 27.10% | 28.11% | 26.60% |
| Pretax margin | 26.61% | 27.24% | 28.32% | 27.72% | 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% |
| Net profit margin | 19.70% | 20.25% | 21.08% | 20.64% | 18.79% | 18.03% | 14.91% | 15.64% | 16.93% | 16.39% | 18.97% | 17.93% | 17.44% | 20.24% | 19.26% | 19.62% | 19.92% | 20.51% | 21.37% | 20.27% |
Trex Company Inc's profitability ratios have shown some fluctuations over the periods analyzed.
The gross profit margin, which measures the percentage of revenue that exceeds the cost of goods sold, has ranged from around 36% to 44% over the past few years. There has been a slight decline in the gross profit margin from around 42% in the earlier periods to around 38-39% in the most recent quarters.
The operating profit margin, reflecting the company's ability to generate profits from its core operations, has shown some variability but has generally been within the range of 20-28%. It experienced a decline in the latter half of 2021 but has since recovered to levels closer to 26-28% in the most recent quarters.
The pretax margin, indicating the percentage of revenue that remains after accounting for operating expenses and before taxes, has followed a similar trend to the operating profit margin, with fluctuations but generally stabilizing around 25-28% in the recent quarters.
The net profit margin, which represents the company's bottom line profitability, has shown a downward trend from around 20% in the earlier periods to around 19% in the most recent quarters. This decrease may suggest that expenses or other factors have impacted the company's overall profitability.
Overall, while Trex Company Inc has maintained relatively healthy profitability ratios, management may need to monitor and address any potential factors affecting the company's net profit margin to ensure sustained profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 17.10% | 18.83% | 20.73% | 19.59% | 22.02% | 19.41% | 13.34% | 13.64% | 19.77% | 23.71% | 29.18% | 23.80% | 22.68% | 23.81% | 21.80% | 20.19% | 22.79% | 23.37% | 24.90% | 24.66% |
| Return on total capital | 35.96% | 35.85% | 39.16% | 42.07% | 38.54% | 37.98% | 31.38% | 37.26% | 47.60% | 47.18% | 53.20% | 42.42% | 37.98% | 42.05% | 40.38% | 41.17% | 39.70% | 40.75% | 43.99% | 45.19% |
| Return on equity (ROE) | 26.63% | 26.87% | 29.42% | 31.50% | 28.66% | 27.98% | 22.88% | 27.59% | 35.62% | 35.86% | 40.37% | 32.09% | 28.79% | 31.49% | 30.20% | 30.80% | 29.84% | 30.85% | 33.44% | 34.44% |
Trex Company Inc has shown a consistent level of profitability over the past few years, as evidenced by its profitability ratios.
- Operating Return on Assets (Operating ROA) has been relatively stable, hovering around the 30% mark throughout the last few years. The ratio peaked at 38.46% in June 30, 2022, indicating a period of strong operational efficiency, before dropping to 18.42% in March 31, 2023, and slowly recovering thereafter.
- Return on Assets (ROA) also followed a similar trend, with variations in the mid-20% range. The ratio saw its highest point at 29.18% in June 30, 2022, before declining and stabilizing around 20% in the later periods.
- Return on Total Capital displays fluctuations, starting at 45.19% in March 31, 2020, and reaching a peak of 53.20% in June 30, 2022. However, it displayed a downward trend thereafter, settling at 35.96% in December 31, 2024.
- Return on Equity (ROE) remained steady, with minor fluctuations around the 30% mark. The ratio reached its peak of 40.37% in June 30, 2022, suggesting efficient use of shareholders' equity. It then declined but stabilized around 26-32% in the latter periods.
Overall, Trex Company Inc has demonstrated strong profitability, with a focus on maximizing returns for both assets and equity holders. Despite some fluctuations, the company has maintained healthy ratios that indicate effective management of its resources.