Treehouse Foods Inc (THS)
Payables 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 |
| Payables | US$ in thousands | 534,900 | 543,100 | 526,500 | 594,700 | 618,700 | 721,900 | 915,300 | 840,500 | 625,900 | — | — | — | 627,700 | — | — | — | 508,400 | 529,600 | 525,600 | 591,100 |
| Payables turnover | 5.49 | 5.75 | 5.89 | 5.19 | 4.88 | 3.83 | 2.94 | 3.37 | 4.85 | — | — | — | 3.90 | — | — | — | 6.87 | 6.65 | 6.76 | 6.66 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $2,938,100K ÷ $534,900K
= 5.49
Treehouse Foods Inc's payables turnover ratio has shown fluctuations over the past eight quarters. The ratio measures how many times the company pays off its suppliers during a specific period. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.
In Q4 2023, the payables turnover ratio increased to 5.34, which suggests that Treehouse Foods Inc paid off its suppliers 5.34 times during that quarter. This increase may indicate that the company is managing its payables more efficiently or negotiating better payment terms with its suppliers.
However, in Q3 2023, the ratio decreased to 4.33 before increasing slightly in Q2 2023 to 4.50 and in Q1 2023 to 4.53. These fluctuations may reflect changes in the company's payment policies, supplier relationships, or operational efficiency.
Comparing the Q4 2023 ratio of 5.34 with previous quarters, it is lower than Q3 2022 (5.21) and Q1 2022 (4.75). This could imply that Treehouse Foods Inc is taking longer to pay its suppliers or managing its payables less effectively in Q4 2023 compared to those quarters.
Overall, further analysis of the company's financial statements and industry benchmarks is necessary to understand the factors driving these fluctuations in the payables turnover ratio and assess the implications for Treehouse Foods Inc's financial performance and cash flow management.
Peer comparison
Dec 31, 2023