Trex Company Inc (TREX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 932,885 | 933,705 | 920,321 | 770,492 | 592,239 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $932,885K
= 0.00
TREX Co., Inc.'s debt-to-assets ratio has shown significant fluctuations over the past five years, ranging from 0.00 to 0.24. In 2023, the company's debt-to-assets ratio decreased significantly to 0.01, indicating a relatively low level of debt relative to its total assets. This suggests that TREX Co., Inc. has a strong financial position with a relatively low level of debt obligations in relation to its total assets.
The notable decrease in the debt-to-assets ratio in 2023 from the previous year could be indicative of effective debt management strategies implemented by the company, such as paying down debt or increasing assets. However, it is important to note that a very low debt-to-assets ratio could also imply underutilization of debt financing opportunities that could potentially enhance returns for shareholders.
Overall, TREX Co., Inc.'s decreasing trend in the debt-to-assets ratio indicates a sound financial position with a conservative approach to debt management, which may be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2023