Trex Company Inc (TREX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets 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 |
| 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 |
| Debt-to-equity 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 |
| Financial leverage ratio | 1.56 | 1.43 | 1.42 | 1.61 | 1.30 | 1.44 | 1.72 | 2.02 | 1.80 | 1.51 | 1.38 | 1.35 | 1.27 | 1.32 | 1.39 | 1.53 | 1.31 | 1.32 | 1.34 | 1.40 |
Trex Company Inc's solvency ratios reflect a strong financial position with consistently low debt levels over the years. The Debt-to-Assets ratio has consistently remained at 0.00, indicating that the company has no debt relative to its total assets. Similarly, the Debt-to-Capital ratio and Debt-to-Equity ratio have also maintained a consistent 0.00 level, signifying that the company's capital structure is primarily equity-financed.
The Financial Leverage ratio, which measures the extent of a company's financial leverage, has shown some fluctuation over the years but generally remains within a manageable range. The ratio decreased from 1.40 to 1.31 by the end of 2020 but experienced an increase in subsequent years, reaching a peak of 2.02 in March 2023 before gradually declining to 1.56 by December 2024. This indicates that the company has been utilizing debt to finance its operations more aggressively in recent years but has been able to maintain a balanced level of leverage overall.
Overall, Trex Company Inc's solvency ratios suggest a stable and well-managed financial structure with minimal debt obligations, which enhances the company's ability to weather economic uncertainties and meet its financial obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 30,567.50 | 124.35 | 106.54 | 73.63 | 42.01 | 63.67 | 57.69 | 94.75 | 1,063.52 | 1,810.68 | 2,201.89 | 5,881.56 | 6,716.54 | 1,353.17 | 620.73 | 506.23 | 233.87 | 147.51 | 107.79 | 103.67 |
The interest coverage ratio for Trex Company Inc has shown a significant fluctuation over the years, indicating varying levels of ability to cover its interest expenses with operating profits.
The ratio started at about 103.67 in March 2020 and gradually increased to 6,716.54 by December 2021, signifying a substantial improvement in the company's ability to meet its interest obligations. This sharp increase in interest coverage suggests that Trex Company Inc was generating sufficient operating income to comfortably cover its interest costs during this period.
However, the trend reversed in the following periods, with the interest coverage ratio dropping to 42.01 by December 2023 and then rising to a very high level of 30,567.50 by December 2024. Such a sharp increase may be attributed to either a significant increase in operating profits or a decrease in interest expenses during that period.
Overall, the fluctuating nature of Trex Company Inc's interest coverage ratio over the years indicates varying levels of financial strength and operational efficiency in meeting its debt obligations. It would be important for stakeholders to closely monitor this ratio to assess the company's financial health and performance in managing interest expenses.