Treehouse Foods Inc (THS)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 70.16 | 79.45 | 75.77 | 69.12 | 68.26 | 77.42 | 85.02 | 78.50 | 74.36 | 77.20 | 104.14 | 86.44 | 74.21 | 80.11 | 74.00 | 67.45 | 61.59 | 69.01 | 65.15 | 55.90 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 70.16 | 79.45 | 75.77 | 69.12 | 68.26 | 77.42 | 85.02 | 78.50 | 74.36 | 77.20 | 104.14 | 86.44 | 74.21 | 80.11 | 74.00 | 67.45 | 61.59 | 69.01 | 65.15 | 55.90 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 70.16 + — – —
= 70.16
The cash conversion cycle of Treehouse Foods Inc has shown fluctuations over the years based on the provided data. The cash conversion cycle measures how long it takes for a company to convert its investment in inventory into cash inflows from sales.
From March 31, 2020, to June 30, 2020, the cash conversion cycle increased from 55.90 days to 65.15 days, suggesting a delay in converting inventory into cash. This trend continued with a further increase to 69.01 days by September 30, 2020. However, by December 31, 2020, the cycle decreased to 61.59 days, indicating an improvement in cash collection efficiency.
The cycle fluctuated throughout 2021 and 2022, with peaks at 104.14 days on June 30, 2022, and a low of 68.26 days on December 31, 2023. Notably, in the latter half of 2024, the cycle remained relatively stable around 70-80 days.
Analyzing the cash conversion cycle can provide insights into the efficiency of Treehouse Foods Inc's working capital management and its ability to optimize cash flow from operations. It is important for the company to monitor and potentially improve this metric to ensure smooth operations and financial stability.
Peer comparison
Dec 31, 2024