Treehouse Foods Inc (THS)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 16.40% | 16.09% | 16.10% | 15.64% | 14.63% | 14.37% | 14.52% | 13.67% | 13.33% | 20.73% | 20.77% | 22.92% | 24.67% | 18.54% | 18.45% | 18.47% | 18.58% | 17.78% | 17.13% | 16.24% |
| Operating profit margin | 4.11% | 4.38% | 3.35% | 1.87% | -0.77% | -3.52% | -3.14% | -2.11% | -0.05% | -2.48% | -1.23% | -0.52% | 0.08% | 2.95% | 0.74% | -0.03% | -0.38% | 0.11% | 2.01% | 2.06% |
| Pretax margin | 2.19% | 1.41% | -1.24% | -3.06% | -3.94% | -5.02% | -2.17% | -0.84% | -0.59% | 0.12% | 0.66% | 0.80% | -1.45% | -0.37% | -5.86% | -10.31% | -9.48% | -9.48% | -4.41% | -1.22% |
| Net profit margin | 1.51% | 0.60% | -2.04% | -3.50% | -4.14% | -4.70% | -1.74% | -0.52% | -0.36% | 1.85% | 1.84% | 1.47% | 0.42% | -0.12% | -4.51% | -8.48% | -8.42% | -8.43% | -4.23% | -1.07% |
Treehouse Foods Inc's profitability ratios exhibit fluctuating trends over the past eight quarters. The gross profit margin has shown slight improvements quarter-over-quarter, indicating the company's ability to manage production costs effectively. However, the operating profit margin has been more volatile, with significant fluctuations in profitability levels. This suggests potential challenges in controlling operating expenses.
The pretax margin has also varied, with positive margins in some quarters and negative margins in others. This inconsistency may indicate fluctuations in non-operating income and expenses impacting the company's overall profitability. The net profit margin, reflecting the company's bottom-line profit after all expenses are deducted, has also shown variability, with some quarters reporting profits and others reporting losses.
Overall, while improvement in the gross profit margin is a positive indicator, the fluctuating trends in the operating profit margin, pretax margin, and net profit margin suggest that Treehouse Foods Inc may be facing challenges in consistently generating profits and controlling expenses. Further analysis of the underlying factors influencing these ratios would be necessary to assess the company's financial performance accurately.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 3.52% | 3.77% | 2.82% | 1.61% | -0.64% | -2.19% | -1.88% | -1.32% | -0.04% | -1.35% | -0.74% | -0.32% | 0.05% | 2.36% | 0.61% | -0.03% | -0.31% | 0.10% | 1.78% | 1.93% |
| Return on assets (ROA) | 1.29% | 0.51% | -1.72% | -3.01% | -3.44% | -2.93% | -1.04% | -0.33% | -0.24% | 1.00% | 1.11% | 0.90% | 0.25% | -0.09% | -3.72% | -6.93% | -7.02% | -7.42% | -3.75% | -1.00% |
| Return on total capital | 5.03% | 4.07% | 0.83% | -1.32% | -2.30% | -2.70% | -0.04% | 1.12% | 1.49% | 2.07% | 2.77% | 3.09% | 1.10% | 2.10% | -3.85% | -8.55% | -7.65% | -8.40% | -2.77% | 0.88% |
| Return on equity (ROE) | 3.19% | 1.31% | -4.35% | -7.52% | -8.67% | -8.86% | -3.02% | -0.92% | -0.68% | 2.75% | 3.03% | 2.49% | 0.74% | -0.28% | -10.81% | -20.43% | -19.72% | -21.62% | -10.59% | -2.69% |
Treehouse Foods Inc's profitability ratios show mixed performance over the past eight quarters. The operating return on assets (Operating ROA) has been somewhat stable, ranging from 0.16% to 4.99%, with a slight improvement in the latest quarter Q4 2023. This indicates the company's ability to generate operating income relative to its total assets, with a positive trend in recent quarters.
In terms of Return on assets (ROA), the company has experienced significant fluctuations, from -3.44% in Q4 2022 to 1.29% in Q4 2023. While the ratio turned positive in the latest quarter, it has been generally low and volatile, reflecting challenges in generating profits from its assets.
Return on total capital and Return on equity (ROE) also show variability, with ROE ranging from -8.86% in Q3 2022 to 3.19% in Q4 2023. ROE reflects the company's profitability from shareholders' equity, and the recent increase indicates a better return on equity for investors. However, the negative values in previous quarters highlight the company's struggles in generating returns for its shareholders.
Overall, Treehouse Foods Inc's profitability ratios suggest a somewhat volatile performance in recent quarters, with improvements in operating efficiency and returns for investors in the latest period. It is essential for the company to continue monitoring and improving its profitability metrics to ensure long-term sustainable growth and value creation for its stakeholders.