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

Company name
Symbol
Working capital turnover
Treehouse Foods Inc
THS
12.67
Kraft Heinz Co
KHC
64.16
Lamb Weston Holdings Inc
LW
11.13
Lancaster Colony Corporation
LANC
7.20