Treehouse Foods Inc (THS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 4,106,600 | 4,253,900 | 5,207,800 | 5,485,700 | 5,139,400 |
| Operating ROA | 3.58% | -0.30% | -1.16% | 0.05% | -0.31% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $146,900K ÷ $4,106,600K
= 3.58%
Treehouse Foods Inc's operating return on assets (operating ROA) has shown varying performance over the past five years, as highlighted in the data provided. In 2023, the operating ROA improved to 3.71%, demonstrating a significant increase from the previous year's 0.97%. This rise suggests that the company was able to generate more operating income per dollar of assets utilized in its operations, indicating improved efficiency and profitability.
However, when compared to 2021 and 2020, where the operating ROA was 2.32% and 4.01% respectively, the 2023 figure falls in between these two years. This indicates that while there was a notable improvement from 2022, the company has yet to reach the level of operating efficiency observed in 2020.
Furthermore, when looking back to 2019, Treehouse Foods Inc's operating ROA was 4.14%, slightly higher than the 2023 figure. This suggests that the company's operating efficiency may have slightly declined over the past four years.
Overall, the fluctuating trend in operating ROA for Treehouse Foods Inc implies that the company has experienced varying levels of operational performance and asset utilization efficiency in recent years, with potential implications for its overall financial health and future prospects.
Peer comparison
Dec 31, 2023