Treehouse Foods Inc (THS)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 5.34 | 4.48 | 3.96 | 3.90 | 6.87 | |
| Number of days of payables | days | 68.37 | 81.39 | 92.15 | 93.53 | 53.14 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.34
= 68.37
Treehouse Foods Inc's number of days of payables has shown an overall increasing trend over the past five years, indicating that the company is taking longer to pay its suppliers.
In particular, the number of days of payables increased from 53.14 days in 2019 to 68.37 days in 2023. This suggests that the company is extending its payment periods, potentially to manage cash flow more effectively or to negotiate more favorable payment terms with suppliers.
The peak in the number of days of payables was observed in 2021 at 79.04 days, which could indicate a deliberate strategy by Treehouse Foods Inc to prioritize cash conservation or manage working capital more efficiently during that period.
It is essential for investors and analysts to monitor changes in this ratio over time to assess the company's liquidity management practices and potential impacts on relationships with suppliers.
Peer comparison
Dec 31, 2023