Treehouse Foods Inc (THS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.16 | 68.26 | 77.55 | 105.60 | 61.59 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 70.16 | 68.26 | 77.55 | 105.60 | 61.59 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.16 + — – —
= 70.16
Treehouse Foods Inc's cash conversion cycle has shown fluctuations over the past five years. In December 2020, the cash conversion cycle was 61.59 days, indicating a relatively efficient conversion of inventory and receivables into cash. However, by the end of December 2021, the cycle had increased significantly to 105.60 days, suggesting a longer period to convert inventory and receivables into cash.
The company made improvements in managing its cash conversion cycle by December 2022, as it decreased to 77.55 days. This reduction indicates a more efficient cash management process. Subsequently, by the end of December 2023, the cycle further improved to 68.26 days, showing the company's continued efforts in optimizing its working capital performance.
In the latest year, December 2024, the cash conversion cycle slightly increased to 70.16 days. Although it was a slight increase from the previous year, the company maintained a relatively efficient cycle overall. Overall, the trend in Treehouse Foods Inc's cash conversion cycle reflects a mix of fluctuations and improvements in managing its working capital efficiently over the past five years.
Peer comparison
Dec 31, 2024