Treehouse Foods Inc (THS)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,054,800 | 839,400 | 2,182,500 | 1,428,800 | 1,219,500 |
| Total current liabilities | US$ in thousands | 704,300 | 827,800 | 1,157,700 | 990,700 | 813,400 |
| Current ratio | 1.50 | 1.01 | 1.89 | 1.44 | 1.50 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,054,800K ÷ $704,300K
= 1.50
The current ratio of Treehouse Foods Inc has exhibited fluctuations over the past five years. As of December 31, 2023, the current ratio stood at 1.50, reflecting an improvement from the previous year. A current ratio of 1.50 indicates that the company had $1.50 in current assets for every $1 in current liabilities, suggesting a healthy liquidity position.
Comparing this to the trend from 2022 when the current ratio was 0.98, which was below the ideal threshold of 1.0, it seems that the company has made significant strides in managing its short-term obligations more effectively. The current ratio of 1.50 in 2023 is closer to the levels seen in 2020 and 2019, which were 1.44 and 1.50, respectively.
Overall, Treehouse Foods Inc's current ratio has shown variability in recent years but appears to have strengthened in 2023, indicating an improved ability to meet its short-term financial obligations. This trend suggests that the company may be managing its current assets and liabilities more efficiently, which could enhance its financial stability and operational flexibility.
Peer comparison
Dec 31, 2023