Treehouse Foods Inc (THS)
Working capital turnover
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Revenue (ttm) | US$ in thousands | 3,354,000 | 3,359,100 | 3,383,300 | 3,398,300 | 3,431,600 | 3,517,000 | 3,486,600 | 3,493,300 | 3,411,900 | 3,581,600 | 3,500,400 | 3,693,400 | 3,978,100 | 3,989,400 | 4,283,400 | 4,322,100 | 4,349,700 | 4,312,000 | 4,323,600 | 4,307,000 |
Total current assets | US$ in thousands | 1,009,700 | 999,500 | 928,300 | 955,300 | 1,054,800 | 836,000 | 875,200 | 831,800 | 814,500 | 2,195,000 | 1,352,000 | 1,277,600 | 1,255,800 | 1,126,900 | 1,083,900 | 1,118,900 | 1,428,800 | 1,551,800 | 1,405,200 | 1,413,100 |
Total current liabilities | US$ in thousands | 744,900 | 716,200 | 645,700 | 629,300 | 704,300 | 722,300 | 691,900 | 776,500 | 827,800 | 1,259,100 | 1,173,700 | 1,085,500 | 1,076,200 | 933,600 | 900,100 | 927,400 | 990,700 | 920,600 | 951,700 | 893,700 |
Working capital turnover | 12.67 | 11.86 | 11.97 | 10.42 | 9.79 | 30.93 | 19.02 | 63.17 | — | 3.83 | 19.63 | 19.23 | 22.15 | 20.64 | 23.30 | 22.57 | 9.93 | 6.83 | 9.53 | 8.29 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 fluctuating trends over the years. The ratio measures how efficiently the company utilizes its working capital to generate sales revenue.
From March 2020 to September 2021, the working capital turnover increased steadily, indicating an improvement in the efficiency of working capital management. However, in the subsequent quarters, the ratio declined significantly, reaching a low point in September 2022. This may suggest challenges in managing working capital effectively during this period.
The ratio spiked in March 2023 to a very high level, indicating a substantial increase in the efficiency of utilizing working capital to generate sales. This surge could be attributed to improved inventory management, streamlined receivables collection, or enhanced payables management.
From June 2023 to December 2024, the working capital turnover ratio remained relatively stable, indicating consistent efficiency in working capital utilization during this period. This stability is a positive sign for the company's financial management practices.
Overall, it is essential for Treehouse Foods Inc to monitor and manage its working capital turnover ratio effectively to ensure optimal utilization of working capital resources and sustainable business operations.
Peer comparison
Dec 31, 2024