Trex Company Inc (TREX)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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, 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 for Trex Company Inc has been consistently at 0.00 for the periods from March 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt to finance its operations as a significant portion of its capital structure. A debt-to-capital ratio of 0.00 suggests that the company's capital structure is predominantly equity-financed, which may signal a lower financial risk as there is no debt obligation to repay. Furthermore, a lower debt-to-capital ratio signifies strong financial stability and solvency, as the company is not heavily reliant on debt to fund its operations or expansion.
It is important to note that while a low debt-to-capital ratio is generally favorable, it may also imply that the company is not taking advantage of potential tax benefits associated with debt financing. Additionally, a lack of debt in the capital structure may limit the company's ability to benefit from leverage to enhance returns on equity.
Overall, the consistent 0.00 debt-to-capital ratio for Trex Company Inc demonstrates a conservative approach to capital structure management, highlighting a preference for equity financing and potentially lower financial risk.
Peer comparison
Dec 31, 2024