Treehouse Foods Inc (THS)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 2,938,100 | 3,125,200 | 3,099,400 | 3,087,800 | 3,019,200 | 2,767,500 | 2,693,300 | 2,831,200 | 3,033,500 | 2,190,500 | 2,422,200 | 2,435,800 | 2,449,600 | 3,512,600 | 3,526,100 | 3,511,500 | 3,492,100 | 3,519,700 | 3,552,600 | 3,935,800 |
| Inventory | US$ in thousands | 534,000 | 618,700 | 673,400 | 628,000 | 554,000 | 648,900 | 854,100 | 741,600 | 461,600 | 721,700 | 713,700 | 653,000 | 598,600 | 664,100 | 629,400 | 537,800 | 544,000 | 702,800 | 842,100 | 854,200 |
| Inventory turnover | 5.50 | 5.05 | 4.60 | 4.92 | 5.45 | 4.26 | 3.15 | 3.82 | 6.57 | 3.04 | 3.39 | 3.73 | 4.09 | 5.29 | 5.60 | 6.53 | 6.42 | 5.01 | 4.22 | 4.61 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $2,938,100K ÷ $534,000K
= 5.50
Treehouse Foods Inc's inventory turnover ratio indicates how efficiently the company manages its inventory. The inventory turnover ratio has shown some fluctuations over the past eight quarters. In Q3 2022, the company had the highest inventory turnover ratio of 5.80, indicating that they sold and replaced their inventory almost six times during that period. This suggests strong inventory management.
However, the inventory turnover ratio decreased in subsequent quarters before picking up again in Q4 2022. In the latest quarter, Q4 2023, the inventory turnover ratio was 5.35, which is higher than the ratios reported in Q2 and Q3 2023 but lower than the peak in Q3 2022.
Overall, Treehouse Foods Inc's inventory turnover ratios demonstrate fairly efficient inventory management, with fluctuations that may reflect changes in sales volume, production levels, or supply chain dynamics. It is essential for the company to monitor and analyze these fluctuations to ensure optimal inventory management efficiency in the future.
Peer comparison
Dec 31, 2023
Dec 31, 2023