Trex Company Inc (TREX)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 850,142 | 716,671 | 518,349 | 725,034 | 588,531 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $850,142K)
= 0.00
The debt-to-capital ratio of Trex Company Inc remained consistently at 0.00% for the years ending on December 31, from 2020 to 2024. This indicates that the company has not utilized any debt to finance its operations and investments relative to its capital structure during this period. A debt-to-capital ratio of 0.00% implies that the company's capital structure is predominantly equity-funded, which may suggest a conservative financial approach focused on minimizing financial risk and liabilities. However, it's important to note that a very low debt-to-capital ratio may limit the company's ability to leverage financial resources for potential growth opportunities.
Peer comparison
Dec 31, 2024