Treehouse Foods Inc (THS)

Return on equity (ROE)

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
Net income (ttm) US$ in thousands 26,900 -24,300 -13,800 26,200 53,100 22,200 -75,400 -128,100 -146,300 -152,000 -54,800 -17,000 -12,500 51,000 56,400 46,500 13,800 -5,100 -195,000 -365,300
Total stockholders’ equity US$ in thousands 1,548,900 1,552,600 1,550,100 1,608,100 1,664,800 1,695,800 1,734,900 1,704,400 1,687,000 1,715,000 1,813,600 1,847,800 1,845,400 1,857,800 1,858,500 1,864,500 1,865,000 1,827,300 1,803,700 1,788,100
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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $26,900K ÷ $1,548,900K
= 1.74%

Treehouse Foods Inc's return on equity (ROE) has shown a fluctuating trend over the past several quarters. From March 2020 to September 2021, the ROE figures were negative, indicating that the company was not generating satisfactory returns for its shareholders during that period. However, starting from December 2021, there was a slight improvement in ROE, reaching a positive 3.19% by December 2023. This uptick in ROE suggests that the company was able to enhance its profitability and effectively utilize shareholders' equity.

Despite the positive trend in late 2023, the ROE took a slight dip in the subsequent quarters, with values still remaining positive, although lower, by the end of December 2024. The recent negative ROE figures in the latter part of the dataset, though decreasing, may raise concerns about the company's ability to generate returns on the equity invested by shareholders.

Overall, Treehouse Foods Inc has shown improvement in its return on equity in recent years but experienced some fluctuations. It would be essential for the company to sustain or enhance its profitability to maintain investor confidence and create long-term value for shareholders.


Peer comparison

Dec 31, 2024