Treehouse Foods Inc (THS)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 26,900 | 53,100 | -146,300 | -12,500 | 13,800 |
| Total stockholders’ equity | US$ in thousands | 1,548,900 | 1,664,800 | 1,687,000 | 1,845,400 | 1,865,000 |
| ROE | 1.74% | 3.19% | -8.67% | -0.68% | 0.74% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $26,900K ÷ $1,548,900K
= 1.74%
Treehouse Foods Inc's return on equity (ROE) has shown fluctuations over the past five years. As of December 31, 2020, the ROE was relatively low at 0.74%. However, the following year saw a decline with a negative ROE of -0.68%, indicating a decrease in profitability relative to shareholders' equity.
The trend continued in December 31, 2022, with the ROE decreasing further to -8.67%, signaling a significant decline in the company's ability to generate returns for its shareholders.
However, there was a notable improvement in the ROE as of December 31, 2023, when it increased to 3.19%. This suggests a recovery in profitability and efficiency in the utilization of shareholders' equity.
By December 31, 2024, the ROE stood at 1.74%, indicating a slight improvement compared to the previous year. Overall, Treehouse Foods Inc's ROE has been volatile, with periods of negative returns interspersed with slight recoveries. It is essential for the company to sustain positive ROE trends to demonstrate long-term profitability and effectively utilize shareholder funds.
Peer comparison
Dec 31, 2024