Trex Company Inc (TREX)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 716,671 | 518,349 | 725,034 | 588,531 | 449,175 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $716,671K
= 0.00
The debt-to-equity ratio of TREX Co., Inc. has shown significant fluctuations over the past five years. In 2023, the ratio dramatically decreased to 0.01 from 0.43 in the previous year. This indicates that the company has a very low level of debt compared to its equity in 2023.
The substantial decrease in the debt-to-equity ratio from 2022 to 2023 suggests that the company has either reduced its debt levels or significantly increased its equity base during the year, thereby improving its financial leverage position.
Looking back at the previous years, the company had a debt-to-equity ratio of 0.00 in 2021, 2020, and 2019. This suggests that the company operated with no debt or only a minimal amount relative to its equity in those years.
Overall, the trend in the debt-to-equity ratio for TREX Co., Inc. indicates prudent financial management, with a focus on maintaining low debt levels relative to equity. This can be seen as a positive indicator of the company's financial health and stability.
Peer comparison
Dec 31, 2023