Treehouse Foods Inc (THS)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 320,300 | 19,700 | 16,900 | 14,600 | 43,000 | 74,700 | 199,100 | 192,800 | 304,500 | 67,400 | 17,400 | 48,800 | 364,600 | 365,100 | 293,900 | 330,400 | 202,300 | 45,100 | 63,700 | 79,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | 4,100 | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 175,600 | 165,500 | 163,500 | 158,400 | 158,800 | 155,100 | 218,200 | 264,300 | 151,300 | 255,500 | 259,700 | 241,000 | 308,800 | 268,400 | 265,100 | 292,800 | 270,600 | 305,200 | 301,300 | 367,300 |
| 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 |
| Quick ratio | 0.70 | 0.26 | 0.26 | 0.22 | 0.24 | 0.18 | 0.36 | 0.42 | 0.40 | 0.35 | 0.31 | 0.31 | 0.68 | 0.69 | 0.59 | 0.70 | 0.58 | 0.41 | 0.44 | 0.53 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($320,300K
+ $—K
+ $175,600K)
÷ $704,300K
= 0.70
The quick ratio of Treehouse Foods Inc has shown fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.
In Q4 2022, the quick ratio was 0.27, indicating that the company had $0.27 in liquid assets for every $1 of current liabilities. This ratio improved slightly in Q1 2023 to 0.26, but then dropped significantly in Q2 and Q3 2023 to 0.29 and 0.30, respectively.
However, in Q4 2023, the quick ratio further decreased to 0.74. This sharp increase from the previous quarter could be due to several factors, such as an increase in cash reserves or a decrease in current liabilities.
The downward trend from Q2 2022 to Q3 2023 may indicate potential liquidity issues or inefficiencies in managing short-term obligations. Investors and analysts may need to closely monitor Treehouse Foods Inc's liquidity position to ensure the company can meet its financial obligations in a timely manner.
Peer comparison
Dec 31, 2023