Treehouse Foods Inc (THS)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,512,500 | 3,723,700 | 3,693,300 | 3,659,900 | 3,537,700 | 3,232,000 | 3,150,800 | 3,279,600 | 3,500,200 | 2,763,200 | 3,057,200 | 3,160,100 | 3,251,800 | 4,312,000 | 4,323,600 | 4,307,000 | 4,288,900 | 4,630,500 | 4,967,200 | 5,397,700 |
| Property, plant and equipment | US$ in thousands | 737,000 | 719,100 | 725,600 | 666,400 | 640,400 | 654,500 | 988,300 | 999,600 | 697,900 | 1,021,900 | 1,041,800 | 1,053,100 | 1,066,100 | 1,013,400 | 1,014,300 | 1,022,300 | 1,045,200 | 1,080,200 | 1,149,200 | 1,260,000 |
| Fixed asset turnover | 4.77 | 5.18 | 5.09 | 5.49 | 5.52 | 4.94 | 3.19 | 3.28 | 5.02 | 2.70 | 2.93 | 3.00 | 3.05 | 4.25 | 4.26 | 4.21 | 4.10 | 4.29 | 4.32 | 4.28 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,512,500K ÷ $737,000K
= 4.77
Treehouse Foods Inc's fixed asset turnover ratio has fluctuated over the past eight quarters, ranging from a low of 3.93 in Q2 2023 to a high of 6.68 in Q3 2022. The fixed asset turnover ratio measures how efficiently the company is generating revenue from its fixed assets, such as property, plant, and equipment.
A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more efficiently to generate sales. Treehouse Foods Inc's fixed asset turnover ratio peaked at 6.68 in Q3 2022, suggesting that the company was effectively utilizing its fixed assets to generate revenue at that time.
However, the ratio has since declined, with a notable drop to 3.93 in Q2 2023. This decrease may indicate that Treehouse Foods Inc's fixed assets are not being as efficiently utilized to generate sales during that quarter compared to previous periods.
Overall, Treehouse Foods Inc's fixed asset turnover ratio has shown variability over the past eight quarters, highlighting the importance of monitoring this metric to assess the company's efficiency in utilizing its fixed assets to generate revenue.
Peer comparison
Dec 31, 2023