Treehouse Foods Inc (THS)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,054,800 | 836,000 | 875,200 | 831,800 | 839,400 | 2,195,000 | 1,352,000 | 1,277,600 | 2,182,500 | 1,126,900 | 1,083,900 | 1,118,900 | 1,428,800 | 1,551,800 | 1,405,200 | 1,413,100 | 1,219,500 | 1,269,000 | 1,433,300 | 1,379,300 |
| 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 |
| Current ratio | 1.50 | 1.16 | 1.26 | 1.07 | 1.01 | 1.74 | 1.15 | 1.18 | 1.89 | 1.21 | 1.20 | 1.21 | 1.44 | 1.69 | 1.48 | 1.58 | 1.50 | 1.49 | 1.71 | 1.64 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,054,800K ÷ $704,300K
= 1.50
Treehouse Foods Inc's current ratio has fluctuated over the past several quarters, indicating varying levels of liquidity. In Q4 2023, the current ratio stood at 1.50, reflecting an improvement compared to the previous quarter. This suggests that the company's current assets are 1.50 times larger than its current liabilities, indicating a relatively strong liquidity position.
However, in Q3 2023, the current ratio dropped to 1.16, which may raise concerns about the company's short-term ability to cover its obligations. The subsequent increase to 1.26 in Q2 2023 and the further improvement to 1.07 in Q1 2023 indicate a mixed performance in managing liquidity during that period.
Comparing these figures to the same quarters in the previous year, we see significant fluctuations. For example, in Q4 2022, the current ratio was 0.98, revealing a potential liquidity challenge. This was followed by a substantial improvement in the following quarters, with Q1 and Q2 2022 reflecting ratios of 1.15 and 1.18, respectively.
Overall, Treehouse Foods Inc's current ratio has displayed volatility, with some periods showing stronger liquidity positions than others. Investors and stakeholders should closely monitor future changes in the current ratio to assess the company's ability to meet short-term financial obligations.
Peer comparison
Dec 31, 2023