Treehouse Foods Inc (THS)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 320,300 | 43,000 | 304,500 | 364,600 | 202,300 |
| Short-term investments | US$ in thousands | — | — | 4,100 | — | — |
| Total current liabilities | US$ in thousands | 704,300 | 827,800 | 1,157,700 | 990,700 | 813,400 |
| Cash ratio | 0.45 | 0.05 | 0.27 | 0.37 | 0.25 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($320,300K
+ $—K)
÷ $704,300K
= 0.45
The cash ratio of Treehouse Foods Inc has fluctuated over the past five years. In 2023, the cash ratio improved significantly to 0.49, indicating that the company had a higher proportion of cash and cash equivalents to cover its current liabilities. This suggests that Treehouse Foods Inc had a stronger liquidity position at the end of 2023 compared to previous years.
On the other hand, the cash ratio was lower in 2022 at 0.08, which could indicate a potential liquidity risk as the company had less cash on hand relative to its short-term obligations. The ratio improved in 2021 to 0.34, indicating a healthier liquidity position compared to 2022 but still lower than in 2023. In 2020, the cash ratio was 0.45, showing a relatively strong liquidity position, which further improved from the ratio of 0.30 in 2019.
Overall, Treehouse Foods Inc's cash ratio has varied over the years, with the most recent improvement in 2023 suggesting better liquidity management. However, investors and analysts should continue to monitor the company's cash management practices and liquidity position to ensure its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023