Treehouse Foods Inc (THS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 320,300 | 19,700 | 16,900 | 14,600 | 43,000 | 74,700 | 199,100 | 192,800 | 304,500 | 67,400 | 17,400 | 48,800 | 364,600 | 365,100 | 293,900 | 330,400 | 202,300 | 45,100 | 63,700 | 79,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 4,100 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.45 | 0.03 | 0.02 | 0.02 | 0.05 | 0.06 | 0.17 | 0.18 | 0.27 | 0.07 | 0.02 | 0.05 | 0.37 | 0.40 | 0.31 | 0.37 | 0.25 | 0.05 | 0.08 | 0.09 |
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 for Treehouse Foods Inc has fluctuated over the past eight quarters, ranging from a low of 0.06 in Q2 2023 to a high of 0.49 in Q4 2023. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations, while a lower ratio may imply liquidity challenges.
In the most recent quarter, Q4 2023, the cash ratio improved significantly to 0.49, suggesting that the company had a higher level of cash reserves relative to its short-term liabilities. This could be a positive sign of improved liquidity and financial health. However, previous quarters showed lower ratios, with Q2 and Q3 2023 recording the lowest ratios of 0.06.
Overall, the fluctuating cash ratio of Treehouse Foods Inc indicates varying levels of liquidity management over the quarters. It is important for the company to maintain a balance between cash reserves and short-term obligations to ensure financial stability and meet operational needs efficiently.
Peer comparison
Dec 31, 2023