Treehouse Foods Inc (THS)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 53,100 | -146,300 | -12,500 | 13,800 | -361,000 |
| Total stockholders’ equity | US$ in thousands | 1,664,800 | 1,687,000 | 1,845,400 | 1,865,000 | 1,830,900 |
| ROE | 3.19% | -8.67% | -0.68% | 0.74% | -19.72% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $53,100K ÷ $1,664,800K
= 3.19%
Treehouse Foods Inc's return on equity (ROE) has displayed variability over the past five years. The ROE was negative in three out of the five years, indicating that the company experienced challenges in generating profits relative to its shareholders' equity during those periods. In particular, the ROE was significantly low at -19.72% in 2019, reflecting a substantial deterioration in profitability and efficiency.
However, there was a notable improvement in ROE in 2023 when it reached 3.19%, suggesting a positive trend in the company's performance. Despite this improvement, the ROE remains relatively low compared to the industry average, indicating potential inefficiencies in the utilization of shareholders' equity to generate profits.
Overall, Treehouse Foods Inc's fluctuating ROE highlights the importance of closely monitoring the company's profitability and operational efficiency to ensure sustainable growth and value creation for shareholders.
Peer comparison
Dec 31, 2023