Treehouse Foods Inc (THS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | 20.00 | 22.50 | 22.59 | 23.11 | 22.28 | 20.84 | 14.44 | 12.41 | 23.13 | 10.81 | 11.77 | 13.11 | 10.53 | 16.07 | 16.31 | 14.71 | 15.85 | 15.17 | 16.49 | 14.70 |
| 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 |
| Working capital turnover | 10.02 | 32.75 | 20.15 | 66.18 | 304.97 | 3.45 | 17.67 | 17.07 | 3.42 | 14.29 | 16.63 | 16.50 | 7.42 | 6.83 | 9.53 | 8.29 | 10.56 | 11.09 | 8.33 | 10.03 |
Treehouse Foods Inc's activity ratios provide insight into how efficiently the company manages its assets and liabilities.
1. Inventory turnover: The ratio indicates how many times the company sells and replaces its inventory in a given period. Treehouse Foods Inc's inventory turnover has fluctuated over the quarters, ranging from 3.52 to 5.80. A higher turnover generally indicates better inventory management, with the company generating sales from its inventory efficiently.
2. Receivables turnover: This ratio measures how quickly the company collects outstanding receivables from customers. Treehouse Foods Inc's receivables turnover has also varied, with values between 16.69 and 28.24. Higher turnover values imply effective credit management and timely collection of receivables.
3. Payables turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Treehouse Foods Inc's payables turnover has been relatively stable, ranging from 4.30 to 5.34. A higher ratio suggests efficient management of payables and potentially favorable payment terms with suppliers.
4. Working capital turnover: This ratio evaluates how effectively the company utilizes its working capital to generate revenue. Treehouse Foods Inc's working capital turnover has shown significant fluctuations, with values ranging from 4.68 to 58.01. A higher turnover indicates that the company is efficiently utilizing its resources to generate sales.
Overall, Treehouse Foods Inc's activity ratios demonstrate varying levels of efficiency in managing its assets and liabilities over different quarters. Monitoring these ratios can help assess the company's operational performance and identify areas for improvement in its working capital management.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.34 | 72.26 | 79.30 | 74.23 | 66.97 | 85.58 | 115.75 | 95.61 | 55.54 | 120.26 | 107.55 | 97.85 | 89.19 | 69.01 | 65.15 | 55.90 | 56.86 | 72.88 | 86.52 | 79.22 |
| Days of sales outstanding (DSO) | days | 18.25 | 16.22 | 16.16 | 15.80 | 16.38 | 17.52 | 25.28 | 29.42 | 15.78 | 33.75 | 31.01 | 27.84 | 34.66 | 22.72 | 22.38 | 24.81 | 23.03 | 24.06 | 22.14 | 24.84 |
| Number of days of payables | days | 66.45 | 63.43 | 62.00 | 70.30 | 74.80 | 95.21 | 124.04 | 108.36 | 75.31 | — | — | — | 93.53 | — | — | — | 53.14 | 54.92 | 54.00 | 54.82 |
Treehouse Foods Inc's activity ratios exhibit fluctuations over the quarters, providing insights into the management of the company's inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH): The DOH ratio measures how efficiently the company manages its inventory. The trend shows an increase in the number of days inventory is held from Q4 2022 to Q2 2023, indicating a potential buildup of inventory levels. This could lead to increased carrying costs and potential liquidity issues if inventory remains unsold for extended periods.
2. Days of Sales Outstanding (DSO): The DSO ratio reflects the average number of days it takes for the company to collect on its credit sales. The trend demonstrates an increase in collection days from Q3 2022 to Q3 2023, suggesting a potential delay in receiving cash from customers. This could impact the company's cash flow and working capital management.
3. Number of Days of Payables: The number of days of payables indicates the average number of days it takes for the company to pay its suppliers. The trend shows fluctuation but generally stable payment terms over the quarters. However, the company appears to be managing its payment obligations within a reasonable timeframe compared to its collection and inventory turnover.
Overall, while there are fluctuations in Treehouse Foods Inc's activity ratios, it is important for the company to focus on optimizing its inventory levels, improving receivables collection efficiency, and effectively managing its payables to enhance liquidity, working capital, and overall operational efficiency.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.77 | 5.18 | 5.09 | 5.49 | 5.52 | 4.94 | 3.19 | 3.28 | 5.02 | 2.70 | 2.93 | 3.00 | 3.05 | 4.25 | 4.26 | 4.21 | 4.10 | 4.29 | 4.32 | 4.28 |
| Total asset turnover | 0.86 | 0.86 | 0.84 | 0.86 | 0.83 | 0.62 | 0.60 | 0.63 | 0.67 | 0.54 | 0.60 | 0.61 | 0.59 | 0.80 | 0.82 | 0.82 | 0.83 | 0.88 | 0.89 | 0.94 |
The fixed asset turnover ratio for Treehouse Foods Inc fluctuated over the past eight quarters, ranging from a high of 6.68 in Q3 2022 to a low of 3.93 in Q2 2023. This ratio measures the company's efficiency in generating sales revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio also varied over the same period, with a high of 0.87 in Q2 2022 and a low of 0.65 in Q2 2023. This ratio evaluates the company's ability to generate sales revenue in relation to its total assets. A higher total asset turnover ratio suggests that the company is utilizing its assets efficiently to generate sales.
Overall, the trend for both ratios indicates some volatility in the company's asset efficiency over the past two years. It is essential for Treehouse Foods Inc to closely monitor and manage its asset turnover ratios to ensure optimal utilization of its fixed and total assets in generating revenue.