Trex Company Inc (TREX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 850,142 | 716,671 | 518,349 | 725,034 | 588,531 |
| ROE | 26.63% | 28.66% | 35.62% | 28.79% | 29.84% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $226,392K ÷ $850,142K
= 26.63%
Trex Company Inc's return on equity (ROE) has shown some fluctuations over the past five years.
As of December 31, 2020, the ROE was reported at 29.84%, indicating that for every dollar of shareholders' equity, the company generated a profit of approximately 29.84 cents.
By December 31, 2021, the ROE slightly decreased to 28.79%, suggesting a slight decline in the company's profitability relative to the prior year. However, by December 31, 2022, the ROE rebounded significantly to 35.62%, reflecting a notable improvement in the company's ability to generate returns for its shareholders.
Subsequently, by December 31, 2023, the ROE decreased to 28.66%, indicating a dip in profitability compared to the preceding year. Finally, as of December 31, 2024, the ROE further declined to 26.63%, signaling a continued decrease in the company's return on equity.
Overall, while the company experienced fluctuations in its ROE over the five-year period, it is crucial for stakeholders to monitor and assess the reasons behind these variations to ensure sustainable and optimal performance in the future.
Peer comparison
Dec 31, 2024