Trex Company Inc (TREX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 305,673 | 276,204 | 246,735 | 275,376 | 233,635 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 850,142 | 716,671 | 518,349 | 725,034 | 588,531 |
| Return on total capital | 35.96% | 38.54% | 47.60% | 37.98% | 39.70% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $305,673K ÷ ($—K + $850,142K)
= 35.96%
The return on total capital for Trex Company Inc has shown fluctuations over the years as per the data provided. In 2020, the return on total capital was 39.70%, indicating a strong performance in utilizing its total capital to generate profits. However, in 2021, there was a slight decrease to 37.98%, although it remained relatively high.
The year 2022 saw a significant increase in the return on total capital to 47.60%, reflecting an efficient use of capital to generate returns for the company. In 2023, there was a slight decline to 38.54%, but the return remained above the levels seen in 2021.
By the end of 2024, the return on total capital further decreased to 35.96%, indicating a moderate decline in the company's ability to generate returns on its total capital compared to the previous years.
Overall, Trex Company Inc has demonstrated varying levels of efficiency in utilizing its total capital to generate returns over the years, with fluctuations in performance observed annually.
Peer comparison
Dec 31, 2024