Treehouse Foods Inc (THS)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,805,600 | 2,835,800 | 2,853,700 | 2,863,800 | 2,855,500 | 2,916,800 | 2,891,000 | 2,919,900 | 2,893,400 | 3,067,800 | 2,993,600 | 3,131,500 | 3,333,800 | 3,288,400 | 3,520,100 | 3,533,700 | 3,547,500 | 3,512,600 | 3,526,100 | 3,511,500 |
| Inventory | US$ in thousands | 539,300 | 617,300 | 592,400 | 542,300 | 534,000 | 618,700 | 673,400 | 628,000 | 589,500 | 648,900 | 854,100 | 741,600 | 677,800 | 721,700 | 713,700 | 653,000 | 598,600 | 664,100 | 629,400 | 537,800 |
| Inventory turnover | 5.20 | 4.59 | 4.82 | 5.28 | 5.35 | 4.71 | 4.29 | 4.65 | 4.91 | 4.73 | 3.50 | 4.22 | 4.92 | 4.56 | 4.93 | 5.41 | 5.93 | 5.29 | 5.60 | 6.53 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,805,600K ÷ $539,300K
= 5.20
Treehouse Foods Inc's inventory turnover has shown a declining trend over the period from March 31, 2020, to December 31, 2024. The inventory turnover ratio indicates the number of times a company's inventory is sold and replaced over a specific period.
Initially standing at 6.53 on March 31, 2020, the inventory turnover gradually decreased to 4.22 on March 31, 2022. This decline suggests that Treehouse Foods Inc took longer to sell its inventory, which could indicate inefficiencies in inventory management, overstocking, or slowing sales.
There was a slight improvement in inventory turnover by June 30, 2022, reaching 3.5, but it remained relatively low compared to the earlier periods. However, the ratio started to increase gradually thereafter, reaching 5.20 by December 31, 2024. An increasing trend in the inventory turnover ratio could suggest that the company is managing its inventory more efficiently.
Overall, the analysis of Treehouse Foods Inc's inventory turnover indicates fluctuations in the efficiency of inventory management practices over the period, with a possible improvement towards the end of the period in consideration.
Peer comparison
Dec 31, 2024
Dec 31, 2024