Trex Company Inc (TREX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 205,384 | 184,626 | 208,737 | 175,631 | 144,738 |
| Total assets | US$ in thousands | 932,885 | 933,705 | 920,321 | 770,492 | 592,239 |
| ROA | 22.02% | 19.77% | 22.68% | 22.79% | 24.44% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $205,384K ÷ $932,885K
= 22.02%
TREX Co., Inc.'s return on assets (ROA) has shown variations over the past five years. The ROA for the most recent year, ending December 31, 2023, stands at 22.02%, indicating that the company generated $0.2202 in net income for every dollar of assets it holds.
Compared to the preceding year, the ROA has slightly increased from 19.77% in 2022 to 22.02% in 2023, suggesting improved efficiency in asset utilization and profitability. However, when examining a longer-term trend, the ROA has exhibited fluctuations.
In 2021, the ROA was at 22.68%, which was slightly higher than in 2023. This was followed by a relatively consistent ROA of around 22.79% in 2020. The highest ROA in recent years was recorded in 2019, at 24.44%.
Overall, TREX Co., Inc. has historically maintained a solid ROA performance, reflecting the ability of the company to generate profits from its assets. The recent uptick in ROA from 2022 to 2023 may suggest improved operational efficiency or strategic decisions that positively impacted the company's profitability relative to its asset base.
Peer comparison
Dec 31, 2023