Treehouse Foods Inc (THS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 16.79% | 15.12% | 15.84% | 18.19% | 18.58% |
| Operating profit margin | 4.28% | -0.36% | -2.04% | 0.09% | -0.38% |
| Pretax margin | 2.26% | -4.00% | -1.15% | -1.58% | -9.48% |
| Net profit margin | 1.55% | -4.24% | -0.42% | 0.46% | -8.42% |
Treehouse Foods Inc's profitability ratios have shown fluctuations over the past five years. The gross profit margin has declined from 18.58% in 2019 to 16.79% in 2023, indicating a decrease in the company's ability to generate profit after accounting for the cost of goods sold.
The operating profit margin has also fluctuated, with a significant increase from 1.20% in 2022 to 4.44% in 2023. This suggests improved operational efficiency in managing operating expenses to generate profits from sales.
The pretax margin has been negative in some years, with a notable improvement from -3.63% in 2019 to 2.43% in 2023. This indicates that the company has been able to better manage its expenses and generate higher profits before accounting for taxes.
The net profit margin shows a similar trend, with a significant improvement from -8.42% in 2019 to 1.55% in 2023. This suggests that Treehouse Foods Inc has been more effective in controlling expenses and increasing net income relative to revenue.
Overall, the company has shown improvements in its profitability ratios, particularly in controlling costs and generating higher profits. However, there are still areas where further efficiency gains could be made to sustain and enhance profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.58% | -0.30% | -1.16% | 0.05% | -0.31% |
| Return on assets (ROA) | 1.29% | -3.44% | -0.24% | 0.25% | -7.02% |
| Return on total capital | 5.05% | -2.25% | 1.02% | 1.10% | -7.65% |
| Return on equity (ROE) | 3.19% | -8.67% | -0.68% | 0.74% | -19.72% |
Treehouse Foods Inc's profitability ratios have shown variability over the past five years.
- Operating return on assets (Operating ROA) increased from 0.97% in 2022 to 3.71% in 2023, indicating that the company's operating profit generated from its assets has improved significantly.
- However, Return on assets (ROA) has been fluctuating, with a negative value of -3.44% in 2022. The positive ROA of 1.29% in 2023 suggests that the company is generating a modest profit relative to its total assets.
- Return on total capital increased from 1.34% in 2022 to 4.97% in 2023, indicating improved profitability in terms of total capital employed in the business.
- Return on equity (ROE) has also shown improvement, with a positive value of 3.19% in 2023, compared to negative values in the previous years. This indicates that the company is able to generate some profit for its shareholders relative to the equity invested.
Overall, while the company's profitability ratios have shown some improvement in 2023, there are still fluctuations and room for further enhancement to ensure sustainable profitability in the future.