Trex Company Inc (TREX)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 449,175 | 423,550 | 391,533 | 363,157 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $716,671K)
= 0.00
The debt-to-capital ratio of TREX Co., Inc. has shown significant fluctuations over the past eight quarters. In Q1 2022 and Q2 2022, the company had a debt-to-capital ratio of 0.00, indicating that it had no debt relative to its total capital during that period. However, starting from Q3 2022, there was a noticeable increase in the ratio, reaching 0.30 by Q4 2022.
The trend continued into 2023, with the ratio peaking at 0.40 in Q1 2023, signifying a higher level of debt in comparison to capital. Subsequently, there was a slight decline in Q2 2023 to 0.25 before dropping further to 0.08 in Q3 2023. Finally, in Q4 2023, the debt-to-capital ratio decreased significantly to 0.01, suggesting a substantial reduction in debt relative to capital composition.
These fluctuations in the debt-to-capital ratio may indicate varying levels of financial leverage and risk exposure for TREX Co., Inc. A lower ratio implies a healthier financial position with less reliance on debt financing, while a higher ratio suggests a higher degree of indebtedness and potential financial risk. Monitoring the trend of this ratio is essential for assessing the company's capital structure and financial stability over time.
Peer comparison
Dec 31, 2023