Trex Company Inc (TREX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 850,142 | 887,904 | 894,900 | 804,146 | 716,671 | 691,651 | 623,525 | 560,177 | 518,349 | 556,538 | 641,475 | 721,065 | 725,034 | 720,809 | 648,776 | 590,143 | 588,531 | 544,064 | 499,661 | 451,723 |
| ROE | 26.63% | 26.87% | 29.42% | 31.50% | 28.66% | 27.98% | 22.88% | 27.59% | 35.62% | 35.86% | 40.37% | 32.09% | 28.79% | 31.49% | 30.20% | 30.80% | 29.84% | 30.85% | 33.44% | 34.44% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $226,393K ÷ $850,142K
= 26.63%
The return on equity (ROE) for Trex Company Inc has shown some fluctuations over the analyzed period from March 31, 2020, to December 31, 2024. ROE provides insight into how effectively the company is using shareholders' equity to generate profits.
The ROE started at 34.44% in March 2020 and gradually decreased to 26.63% by the end of December 2024. There were variations in ROE throughout the period, which can indicate changes in the company's profitability and efficiency in utilizing equity.
The fluctuations in ROE could be influenced by various factors such as changes in profitability, debt levels, asset utilization, or shareholder equity composition. A decreasing ROE trend over time may raise concerns about the company's ability to maintain or improve profitability relative to shareholder equity.
It is important for stakeholders to closely monitor ROE trends and analyze the underlying reasons for fluctuations to assess Trex Company Inc's financial performance and evaluate its ability to generate returns for shareholders.
Peer comparison
Dec 31, 2024