Trex Company Inc (TREX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 716,671 | 518,349 | 725,034 | 588,531 | 449,175 |
| ROE | 28.66% | 35.62% | 28.79% | 29.84% | 32.22% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $205,384K ÷ $716,671K
= 28.66%
The return on equity (ROE) of TREX Co., Inc. has exhibited some fluctuations over the past five years. In 2023, its ROE decreased to 28.66% from 35.62% in 2022. This reduction in ROE may be indicative of declining efficiency in generating profits from shareholders' equity. Despite the decrease in ROE in 2023, TREX Co., Inc. still maintained a relatively strong return compared to 2021 and 2020 when the ROE was 28.79% and 29.84%, respectively. The highest ROE recorded was in 2019 at 32.22%.
The variations in ROE suggest that TREX Co., Inc. may have experienced changes in its financial performance and efficiency in utilizing shareholders' equity over the years. Further analysis would be required to determine the specific reasons behind these fluctuations and to assess the company's overall profitability and sustainability.
Peer comparison
Dec 31, 2023