Treehouse Foods Inc (THS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,354,000 | 3,431,600 | 3,297,100 | 2,814,300 | 4,349,700 |
| Total current assets | US$ in thousands | 1,009,700 | 1,054,800 | 814,500 | 1,255,800 | 1,428,800 |
| Total current liabilities | US$ in thousands | 744,900 | 704,300 | 827,800 | 1,076,200 | 990,700 |
| Working capital turnover | 12.67 | 9.79 | — | 15.67 | 9.93 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,354,000K ÷ ($1,009,700K – $744,900K)
= 12.67
Treehouse Foods Inc's working capital turnover has shown varying trends over the past five years, as per the provided data. In 2020, the working capital turnover ratio stood at 9.93, indicating that the company generated sales nearly 10 times the amount of working capital invested.
The ratio significantly improved in 2021, reaching 15.67, suggesting an increase in efficiency in utilizing working capital to generate sales revenue. However, data for 2022 is not available (denoted by '—'), which makes it challenging to analyze continuity in performance.
In 2023, the working capital turnover decreased to 9.79, implying a decrease in the company's ability to convert working capital into sales. This decline may indicate inefficiencies in managing working capital during that period.
Lastly, in 2024, the ratio improved to 12.67, indicating a recovery in efficiency in the utilization of working capital for generating sales revenue. Overall, Treehouse Foods Inc's working capital turnover has shown fluctuations, with improvements and declines observed in different years. A more consistent trend over time would be beneficial for the company's financial efficiency.
Peer comparison
Dec 31, 2024