Trex Company Inc (TREX)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 205,384 | 193,510 | 142,667 | 154,547 | 184,627 | 199,581 | 258,953 | 231,403 | 208,737 | 227,007 | 195,922 | 181,774 | 175,631 | 167,827 | 167,093 | 155,585 | 144,738 | 134,412 | 121,907 | 129,017 |
| Total assets | US$ in thousands | 932,885 | 996,812 | 1,069,820 | 1,133,120 | 933,705 | 841,898 | 887,294 | 972,396 | 920,321 | 953,451 | 898,820 | 900,290 | 770,492 | 718,235 | 670,990 | 630,856 | 592,239 | 570,770 | 536,198 | 535,645 |
| ROA | 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% | 24.44% | 23.55% | 22.74% | 24.09% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $205,384K ÷ $932,885K
= 22.02%
TREX Co., Inc.'s return on assets (ROA) has shown fluctuations over the past eight quarters. In Q4 2023, the ROA was 22.02%, marking a slight increase from the previous quarter's 19.41%. This indicates that the company generated $0.2202 in profit for every dollar of assets it possesses during that quarter.
However, compared to the same quarter in the previous year (Q4 2022) when the ROA was 19.77%, the current performance reflects an improvement. The company's ROA peaked in Q2 2022 at 29.18%, implying that the firm was more efficient in generating profits from its assets during that period.
On average, TREX Co., Inc.'s ROA for the recent quarters has been relatively strong, hovering around the 20% mark. This suggests that the company has been effective in utilizing its assets to generate profit, though there is still room for improvement compared to the exceptional performance seen in Q2 2022.
It is important for the company to continue monitoring its ROA closely as it is a key indicator of how efficiently it is utilizing its assets to generate profits and create value for its shareholders. Tracking the trends in ROA can help management make informed decisions about operations, investments, and resource allocation to optimize financial performance.
Peer comparison
Dec 31, 2023