Treehouse Foods Inc (THS)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,009,700 | 1,054,800 | 814,500 | 1,255,800 | 1,428,800 |
| Total current liabilities | US$ in thousands | 744,900 | 704,300 | 827,800 | 1,076,200 | 990,700 |
| Current ratio | 1.36 | 1.50 | 0.98 | 1.17 | 1.44 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,009,700K ÷ $744,900K
= 1.36
Treehouse Foods Inc's current ratio has shown fluctuations over the past five years. The current ratio is a measure of the company's ability to meet its short-term obligations using its current assets. In 2020, the current ratio was 1.44, indicating that the company had $1.44 in current assets for every $1 in current liabilities.
However, the current ratio decreased to 1.17 in 2021, suggesting a potential weakening of the company's liquidity position as it had fewer current assets relative to its current liabilities. This trend continued in 2022 as the current ratio dropped to 0.98, falling below 1, which may raise concerns about Treehouse Foods Inc's short-term liquidity.
The company's financial position improved in 2023 with a current ratio of 1.50, indicating that it had more than enough current assets to cover its short-term obligations. In 2024, the current ratio slightly decreased to 1.36, still indicating a healthy liquidity position.
Overall, fluctuations in Treehouse Foods Inc's current ratio over the years suggest varying levels of liquidity and the need for management to closely monitor and manage the company's current assets and liabilities to ensure its ability to meet short-term financial obligations efficiently.
Peer comparison
Dec 31, 2024