Treehouse Foods Inc (THS)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 289,600 | 320,300 | 43,000 | 308,600 | 364,600 |
| Short-term investments | US$ in thousands | — | — | 27,200 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 744,900 | 704,300 | 827,800 | 1,076,200 | 990,700 |
| Quick ratio | 0.39 | 0.45 | 0.08 | 0.29 | 0.37 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($289,600K
+ $—K
+ $—K)
÷ $744,900K
= 0.39
The quick ratio of Treehouse Foods Inc, a measure of the company's ability to meet its short-term obligations with its most liquid assets, has shown fluctuations over the years.
As of December 31, 2020, the quick ratio stood at 0.37, indicating that the company had $0.37 in liquid assets to cover each dollar of its current liabilities. However, by December 31, 2021, the quick ratio had decreased to 0.29, suggesting a potential strain on the company's short-term liquidity.
Subsequently, the quick ratio improved significantly by December 31, 2022, reaching 0.08. This indicates a sharp decline in the company's ability to meet its short-term obligations with its quick assets. However, the ratio rebounded by December 31, 2023, standing at 0.45, showing a positive sign of improved liquidity management.
By December 31, 2024, the quick ratio of Treehouse Foods Inc was at 0.39, indicating a slight decrease from the previous year but still showing a reasonable level of liquidity to cover its short-term liabilities. Overall, the fluctuating trend in the quick ratio underscores the importance of closely monitoring the company's liquidity position and management strategies.
Peer comparison
Dec 31, 2024