Treehouse Foods Inc (THS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 96,500 | 158,200 | 71,000 | -14,100 | 121,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,548,900 | 1,664,800 | 1,687,000 | 1,845,400 | 1,865,000 |
| Return on total capital | 6.23% | 9.50% | 4.21% | -0.76% | 6.54% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $96,500K ÷ ($—K + $1,548,900K)
= 6.23%
Treehouse Foods Inc's return on total capital has shown fluctuations over the past five years.
1. December 31, 2020: 6.54%
2. December 31, 2021: -0.76%
3. December 31, 2022: 4.21%
4. December 31, 2023: 9.50%
5. December 31, 2024: 6.23%
The return on total capital is a measure of how efficiently the company is using its capital to generate profits. In 2021, the company incurred a negative return on total capital, which could indicate inefficiencies in its capital allocation or operational performance during that year. However, this negative return was followed by improvements in subsequent years, with returns ranging from 4.21% to 9.50%.
Overall, Treehouse Foods Inc's return on total capital has shown variability, with periods of improvement and decline. Investors and analysts should further investigate the underlying factors driving these fluctuations to assess the company's financial health and performance.
Peer comparison
Dec 31, 2024