Trex Co's gross profit for the
three
months ended in Dec. 2023 was $71 Mil. Trex Co's gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $452 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Trex Co's gross profit for the
three
months ended in Dec. 2023 was $71 Mil. Trex Co's Revenue for the
three
months ended in Dec. 2023 was $196 Mil. Therefore, Trex Co's Gross Margin % for the quarter that ended in Dec. 2023 was 36.09%.
Trex Co had a gross margin of 36.09% for the quarter that ended in Dec. 2023 => Competition eroding margins
During the past 13 years, the highestGross Margin % of Trex Co was 43.10%. The lowest was 35.13%. And the median was 39.91%.
Warning Sign:
Trex Co Inc gross margin has been in long-term decline. The average rate of decline per year is -1.8%.
Trex Co Gross Profit Historical Data
The historical data trend for Trex Co's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Building Products & Equipment subindustry, Trex Co's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trex Co Gross Profit Distribution
For the Construction industry and Industrials sector, Trex Co's Gross Profit distribution charts can be found below:
* The bar in red indicates where Trex Co's Gross Profit falls into.
Trex Co Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Trex Co's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $452 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
Trex Co's Gross Margin % for the quarter that ended in Dec. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Trex Co (NYSE:TREX) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Trex Co had a gross margin of 36.09% for the quarter that ended in Dec. 2023 => Competition eroding margins
Trex Co Gross Profit Related Terms
Thank you for viewing the detailed overview of Trex Co's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Trex Co Inc is a manufacturer of wooden alternative-decking products. The company offers outdoor products in the decking, railing, porch, fencing, trim, steel deck framing, and outdoor lighting categories. Its products are sold under the Trex brand and manufactured in the United States. Further, the company licenses its Trex brand to third parties to manufacture and sell products under the Trex trademark. The distribution is focused on wholesale distributors and retail lumber dealers, which in turn sell Trex products to homeowners and contractors, with an emphasis on professional contractors, remodelers, and homebuilders. The company operates in two reportable segments Trex Residential and Trex Commercial. The majority of revenue is derived from the Trex Residential segment.
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