Trex Company Inc (TREX)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 226,393 | 238,572 | 263,285 | 253,323 | 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 |
| Total assets | US$ in thousands | 1,324,300 | 1,267,220 | 1,269,930 | 1,292,960 | 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 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $226,393K ÷ $1,324,300K
= 17.10%
Trex Company Inc's return on assets (ROA) has shown fluctuating trends over the past several periods. From March 31, 2020 to June 30, 2022, there was a general upward trend in ROA, indicating an improvement in the company's efficiency in generating profits relative to its total assets.
However, starting from March 31, 2023, there was a noticeable decline in ROA, which continued until December 31, 2024. This decrease suggests a potential decline in the company's profitability and efficiency in utilizing its assets to generate income.
Overall, the analysis of Trex Company Inc's ROA indicates that while there was initial improvement in profitability and asset utilization, the subsequent decline in ROA raises concerns about the company's operational performance and effectiveness in generating returns for its stakeholders. Further investigation into the factors influencing this decline may be necessary to address potential issues and drive future profitability improvements.
Peer comparison
Dec 31, 2024