Trex Company Inc (TREX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 305,675 | 318,347 | 350,406 | 338,269 | 276,205 | 262,702 | 195,690 | 208,732 | 246,736 | 262,548 | 341,293 | 305,841 | 275,378 | 303,109 | 261,950 | 242,989 | 233,635 | 221,707 | 219,792 | 204,135 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 35.96% | 35.85% | 39.16% | 42.07% | 38.54% | 37.98% | 31.38% | 37.26% | 47.60% | 47.18% | 53.20% | 42.42% | 37.98% | 42.05% | 40.38% | 41.17% | 39.70% | 40.75% | 43.99% | 45.19% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $305,675K ÷ ($—K + $850,142K)
= 35.96%
The return on total capital for Trex Company Inc has fluctuated over the past few years, with the ratio ranging from a high of 53.20% in June 2022 to a low of 31.38% in June 2023. The company's return on total capital has generally trended downward from 2022 to 2024, indicating a decrease in the efficiency of utilizing its total capital to generate profits. However, it is important to note that the ratio has shown some variability within this period, suggesting potential fluctuations in the company's profitability and capital structure. Further analysis of the company's financial performance and underlying factors influencing its return on total capital would be necessary to gain a comprehensive understanding of its financial health and operational efficiency.
Peer comparison
Dec 31, 2024