Treehouse Foods Inc (THS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 103,100 | 146,900 | -12,600 | -44,200 | 149,100 |
| Total assets | US$ in thousands | 3,980,000 | 4,106,600 | 4,253,900 | 5,207,000 | 5,485,700 |
| Operating ROA | 2.59% | 3.58% | -0.30% | -0.85% | 2.72% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $103,100K ÷ $3,980,000K
= 2.59%
Treehouse Foods Inc's operating return on assets (ROA) is a key metric that indicates the company's efficiency in generating profits from its assets. The trend analysis of Treehouse Foods Inc's operating ROA from December 31, 2020, to December 31, 2024, reveals fluctuations in the company's operational efficiency.
- As of December 31, 2020, Treehouse Foods Inc had an operating ROA of 2.72%, indicating that the company generated approximately $0.0272 in operating income for every $1 of assets employed in its operations.
- However, by December 31, 2021, the operating ROA declined significantly to -0.85%, signaling that the company's operating income was insufficient to cover the asset base, resulting in a negative return.
- The trend continued into December 31, 2022, with an operating ROA of -0.30%, further highlighting operational challenges and inefficiencies within the organization.
- By December 31, 2023, there was a notable improvement in Treehouse Foods Inc's operational performance, with the operating ROA increasing to 3.58%. This improvement suggests better management of assets leading to higher operating income generation.
- The operating ROA slightly decreased to 2.59% by December 31, 2024, indicating a potential stabilization of the company's operational efficiency.
Overall, the fluctuating trend in Treehouse Foods Inc's operating ROA reflects the company's varying ability to effectively utilize its assets to generate operating income over the analyzed period. It is crucial for the company to continue monitoring and optimizing its asset management strategies to enhance profitability and sustainable growth in the future.
Peer comparison
Dec 31, 2024