Trex Company Inc (TREX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 226,392 | 205,384 | 184,626 | 208,737 | 175,631 |
| Total assets | US$ in thousands | 1,324,300 | 932,885 | 933,705 | 920,321 | 770,492 |
| ROA | 17.10% | 22.02% | 19.77% | 22.68% | 22.79% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $226,392K ÷ $1,324,300K
= 17.10%
Trex Company Inc has consistently demonstrated a strong return on assets (ROA) performance over the past five years. The ROA ranged from 17.10% in December 2024 to a peak of 22.79% in December 2020. Despite a slight decline to 19.77% in December 2022, the company managed to maintain relatively high ROA levels, with figures hovering around the low 20% range in subsequent years.
This consistent performance indicates that Trex Company Inc effectively utilizes its assets to generate profits. However, the slight decrease in ROA in some years suggests potential changes in the company's asset management efficiency or profitability. Further analysis is recommended to identify the underlying factors influencing these fluctuations and to assess the long-term sustainability of the company's ROA performance.
Peer comparison
Dec 31, 2024