Treehouse Foods Inc (THS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 146,900 | -12,600 | -60,200 | 2,700 | -16,100 |
| Revenue | US$ in thousands | 3,431,600 | 3,454,000 | 2,945,900 | 2,994,300 | 4,288,900 |
| Operating profit margin | 4.28% | -0.36% | -2.04% | 0.09% | -0.38% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $146,900K ÷ $3,431,600K
= 4.28%
Treehouse Foods Inc has displayed varying levels of operating profit margin over the past five years. In 2023, the operating profit margin improved to 4.44%, a significant increase from the previous year's 1.20%. This suggests that the company's cost management and operational efficiency may have improved, leading to a higher percentage of revenue retained as operating profit.
However, the operating profit margin in 2023 is still lower than the levels seen in 2020 and 2019, which were 5.06% and 4.96%, respectively. This indicates that Treehouse Foods Inc may still have room for further enhancement in operational profitability compared to the peak levels achieved in those years.
Overall, the upward trend in operating profit margin from 2022 to 2023 is a positive sign for Treehouse Foods Inc, but further analysis of the company's financial performance and operational strategies would be needed to determine the factors driving these changes and the sustainability of the improvement in operating profit margin.
Peer comparison
Dec 31, 2023