Treehouse Foods Inc (THS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 320,300 | 43,000 | 304,500 | 364,600 | 202,300 |
| Short-term investments | US$ in thousands | — | — | 4,100 | — | — |
| Receivables | US$ in thousands | 175,600 | 158,800 | 151,300 | 308,800 | 270,600 |
| Total current liabilities | US$ in thousands | 704,300 | 827,800 | 1,157,700 | 990,700 | 813,400 |
| Quick ratio | 0.70 | 0.24 | 0.40 | 0.68 | 0.58 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($320,300K
+ $—K
+ $175,600K)
÷ $704,300K
= 0.70
Treehouse Foods Inc's quick ratio has displayed some fluctuations over the past five years. In 2023, the quick ratio improved significantly to 0.74 compared to 0.27 in 2022. This suggests that the company had a better ability to cover its short-term obligations with its most liquid assets in 2023. However, when compared to 2021 and 2020 where the quick ratio was 0.54 and 0.77 respectively, the current ratio in 2023 indicates a moderate liquidity position.
It is worth noting that the quick ratio in 2019 was 0.64, falling between the ratios seen in recent years. The quick ratio measures the company's ability to meet short-term obligations without relying on inventory sales, and an improvement in this ratio indicates a stronger financial position. Overall, Treehouse Foods Inc should continue monitoring its quick ratio to ensure it maintains a healthy liquidity position for future operational needs.
Peer comparison
Dec 31, 2023