Treehouse Foods Inc (THS)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,805,600 | 2,855,500 | 2,774,700 | 2,342,700 | 3,547,500 |
| Inventory | US$ in thousands | 539,300 | 534,000 | 589,500 | 677,800 | 598,600 |
| Inventory turnover | 5.20 | 5.35 | 4.71 | 3.46 | 5.93 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,805,600K ÷ $539,300K
= 5.20
Based on the data provided, the inventory turnover for Treehouse Foods Inc has shown fluctuation over the five-year period from December 31, 2020, to December 31, 2024.
In December 2020, the inventory turnover was 5.93, indicating that the company's inventory turnover rate was relatively high, suggesting efficient management of inventory. However, this ratio decreased to 3.46 by December 2021, which may signal slower sales or higher inventory levels relative to sales.
By December 2022, the inventory turnover improved to 4.71, but it still remained below the initial level observed in 2020. The trend continued in December 2023 with a further increase to 5.35, showing an improvement in inventory management efficiency.
In the most recent year ending December 31, 2024, the inventory turnover slightly decreased to 5.20. Despite this slight decline, the ratio remained relatively healthy, indicating that Treehouse Foods Inc was still able to efficiently sell and replenish its inventory.
Overall, the fluctuation in inventory turnover over the five-year period suggests that Treehouse Foods Inc has experienced some variability in managing its inventory levels. It is important for the company to monitor and analyze these trends to ensure optimal inventory management efficiency in the future.
Peer comparison
Dec 31, 2024