Treehouse Foods Inc (THS)
Total asset 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 |
| Total assets | US$ in thousands | 4,106,600 | 4,253,900 | 5,207,800 | 5,485,700 | 5,139,400 |
| Total asset turnover | 0.84 | 0.81 | 0.57 | 0.55 | 0.83 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,431,600K ÷ $4,106,600K
= 0.84
Treehouse Foods Inc's total asset turnover ratio has been fluctuating over the past five years, ranging from 0.79 in 2020 to 0.84 in 2023. This ratio indicates how efficiently the company is generating sales revenue from its assets. A higher total asset turnover ratio generally suggests better operational performance and efficiency in utilizing assets to generate sales.
In the case of Treehouse Foods Inc, the trend shows some variability, indicating changes in the company's asset management efficiency over the years. The slight increase in total asset turnover in recent years, with a peak in 2023 at 0.84, suggests that the company may have improved its ability to generate sales relative to its asset base.
However, it is essential to consider industry norms and compare the ratio to competitors to gain a more comprehensive understanding of Treehouse Foods Inc's asset utilization efficiency. Additionally, further analysis of the company's financial statements and operational strategies would provide more insights into factors affecting its total asset turnover ratio.
Peer comparison
Dec 31, 2023