Treehouse Foods Inc (THS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,431,600 | 3,454,000 | 2,945,900 | 2,994,300 | 4,288,900 |
| Receivables | US$ in thousands | 175,600 | 158,800 | 151,300 | 308,800 | 270,600 |
| Receivables turnover | 19.54 | 21.75 | 19.47 | 9.70 | 15.85 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $3,431,600K ÷ $175,600K
= 19.54
Treehouse Foods Inc's receivables turnover has shown some fluctuations over the past five years. The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. A higher ratio indicates that the company is collecting payments more frequently, which is generally favorable.
In 2023, the receivables turnover was 19.54, a decrease from the previous year's ratio of 21.75. This suggests that Treehouse Foods Inc took slightly longer to collect payments from its customers in 2023 compared to 2022. However, the ratio remained relatively high, indicating efficient management of accounts receivable.
Looking back further, the receivables turnover in 2021 was 20.69, higher than in 2020 and 2019, indicating improved collection efficiency during that period. In 2020 and 2019, the ratios were 14.09 and 15.85, respectively, showing a lower collection efficiency during those years.
Overall, Treehouse Foods Inc's receivables turnover has shown some variability but has generally been at acceptable levels, reflecting effective management of accounts receivable. Further analysis in conjunction with other financial metrics would provide a more comprehensive understanding of the company's financial performance.
Peer comparison
Dec 31, 2023