Treehouse Foods Inc (THS)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,512,500 | 3,723,700 | 3,693,300 | 3,659,900 | 3,537,700 | 3,232,000 | 3,150,800 | 3,279,600 | 3,500,200 | 2,763,200 | 3,057,200 | 3,160,100 | 3,251,800 | 4,312,000 | 4,323,600 | 4,307,000 | 4,288,900 | 4,630,500 | 4,967,200 | 5,397,700 |
| Total current assets | US$ in thousands | 1,054,800 | 836,000 | 875,200 | 831,800 | 839,400 | 2,195,000 | 1,352,000 | 1,277,600 | 2,182,500 | 1,126,900 | 1,083,900 | 1,118,900 | 1,428,800 | 1,551,800 | 1,405,200 | 1,413,100 | 1,219,500 | 1,269,000 | 1,433,300 | 1,379,300 |
| Total current liabilities | US$ in thousands | 704,300 | 722,300 | 691,900 | 776,500 | 827,800 | 1,259,100 | 1,173,700 | 1,085,500 | 1,157,700 | 933,600 | 900,100 | 927,400 | 990,700 | 920,600 | 951,700 | 893,700 | 813,400 | 851,400 | 836,700 | 841,300 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,512,500K ÷ ($1,054,800K – $704,300K)
= 10.02
Treehouse Foods Inc's working capital turnover has shown significant fluctuations over the past 8 quarters. In Q1 2023, the working capital turnover was notably high at 58.01, indicating that the company efficiently utilized its working capital to generate revenue during that period. This level of turnover suggests that Treehouse Foods Inc was able to generate $58.01 in revenue for every $1 of working capital invested.
On the other hand, the working capital turnover in Q2 2023 decreased to 15.57, reflecting a lower efficiency in utilizing working capital to generate revenue compared to the previous quarter. This decline in efficiency may signal potential issues with managing the company's working capital and generating revenue effectively during that period.
In Q3 2023, the working capital turnover significantly increased to 25.00, indicating a positive turnaround in efficiently utilizing working capital to drive revenue generation. This improvement suggests that Treehouse Foods Inc may have implemented strategies to optimize its working capital utilization during that quarter.
Overall, the fluctuating trend in working capital turnover for Treehouse Foods Inc highlights the importance of effectively managing working capital to maximize revenue generation and improve financial performance. It is essential for the company to closely monitor and analyze these fluctuations to implement appropriate measures for optimizing working capital efficiency in the future.
Peer comparison
Dec 31, 2023