Treehouse Foods Inc (THS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 16.35% | 15.58% | 15.65% | 15.73% | 16.79% | 17.07% | 17.08% | 16.41% | 15.20% | 14.35% | 14.48% | 15.21% | 16.20% | 17.57% | 17.82% | 18.24% | 18.44% | 18.54% | 18.45% | 18.47% |
| Operating profit margin | 3.07% | 1.93% | 1.97% | 2.97% | 4.28% | 4.97% | 3.89% | 2.28% | -0.52% | -3.00% | -2.65% | -1.70% | 0.11% | 1.95% | 2.54% | 3.01% | 3.43% | 2.95% | 0.74% | -0.03% |
| Pretax margin | 0.99% | -0.88% | -0.35% | 1.19% | 2.43% | 3.58% | 2.96% | 1.14% | -0.11% | -2.52% | -2.45% | -1.64% | -1.11% | 1.14% | 1.69% | 2.09% | 0.39% | -0.45% | -3.22% | -4.82% |
| Net profit margin | 0.80% | -0.72% | -0.41% | 0.77% | 1.55% | 0.63% | -2.16% | -3.67% | -4.29% | -4.24% | -1.57% | -0.46% | -0.31% | 1.28% | 1.32% | 1.08% | 0.32% | -0.12% | -4.51% | -8.48% |
Treehouse Foods Inc's profitability ratios have shown varying trends over the years. The gross profit margin has decreased from 18.47% in March 2020 to 15.65% in June 2024, indicating a decline in the company's ability to generate profits from sales after deducting the cost of goods sold.
The operating profit margin fluctuated during the same period, with significant improvements in profitability in the second half of 2023 and the first half of 2024. However, this was preceded by periods of negative margins, reflecting challenges in controlling operating expenses and generating profits from core business operations.
The pretax margin, which represents the company's profitability before accounting for taxes, also experienced fluctuations. After negative margins in the first half of 2022, there was an improvement in profitability in the following periods, with positive margins recorded in 2023 and 2024. This suggests that the company managed to control costs and enhance revenue generation.
The net profit margin, which measures the company's profitability after accounting for all expenses including interest and taxes, similarly showed volatility. Treehouse Foods Inc struggled with negative margins in 2022, indicating challenges in managing costs and generating profits. However, there was some recovery in profitability in 2023 and 2024, with positive margins recorded.
Overall, the profitability ratios of Treehouse Foods Inc reflect a mix of challenges and improvements in managing costs, generating revenues, and ultimately driving profitability over the analyzed period.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 2.59% | 1.63% | 1.70% | 2.54% | 3.58% | 4.05% | 3.09% | 1.87% | -0.42% | -2.07% | -1.76% | -1.20% | 0.09% | 1.53% | 2.14% | 2.53% | 2.72% | 2.36% | 0.61% | -0.03% |
| Return on assets (ROA) | 0.68% | -0.61% | -0.35% | 0.66% | 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% |
| Return on total capital | 6.23% | 2.22% | 3.68% | 7.03% | 9.50% | 11.94% | 10.16% | 6.51% | 3.91% | -1.19% | -0.55% | 0.91% | 2.25% | 7.50% | 9.14% | 10.48% | 6.54% | 4.50% | -2.06% | -5.89% |
| Return on equity (ROE) | 1.74% | -1.57% | -0.89% | 1.63% | 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% |
Treehouse Foods Inc's profitability ratios have exhibited fluctuations over the periods analyzed.
1. Operating Return on Assets (Operating ROA) ranged from negative values to a peak of 4.05% in September 30, 2023, before declining to 1.63% by December 31, 2024. This ratio indicates how well the company's operations are generating profits relative to its total assets.
2. Return on Assets (ROA) also showed variability, with the highest value of 1.29% recorded on December 31, 2023. However, this ratio was mostly negative or low during the earlier periods, signifying challenges in generating profits from its assets.
3. Return on Total Capital fluctuated, reaching a high of 11.94% on September 30, 2023, before tapering off to 2.22% by September 30, 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders.
4. Return on Equity (ROE) experienced ups and downs, with the highest value of 3.19% on December 31, 2023. However, the ratio was largely negative or low during the earlier periods, indicating struggles in providing returns to its shareholders.
Overall, the analysis of these profitability ratios suggests that Treehouse Foods Inc has faced challenges in consistently generating profits and delivering returns to its various stakeholders. Management may need to focus on improving operational efficiency and asset utilization to enhance profitability in the future.