Treehouse Foods Inc (THS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 152,300 | -68,100 | 38,300 | 45,300 | -304,100 |
| Long-term debt | US$ in thousands | 1,350,500 | 1,335,800 | 1,899,500 | 2,250,400 | 2,146,100 |
| Total stockholders’ equity | US$ in thousands | 1,664,800 | 1,687,000 | 1,845,400 | 1,865,000 | 1,830,900 |
| Return on total capital | 5.05% | -2.25% | 1.02% | 1.10% | -7.65% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $152,300K ÷ ($1,350,500K + $1,664,800K)
= 5.05%
Treehouse Foods Inc's return on total capital has varied over the past five years, ranging from 1.34% in 2022 to 5.40% in both 2020 and 2019. The return on total capital for 2023 was 4.97%, showing an improvement compared to the previous year. This ratio indicates the company's ability to generate profits from its total invested capital, including both debt and equity. A higher return on total capital suggests that the company is efficiently utilizing its capital to generate income for its stakeholders. However, the fluctuating trend of this ratio over the years may indicate varying levels of efficiency in capital allocation and operational performance. Further analysis of the company's profitability, asset management, and capital structure would provide insights into the factors influencing Treehouse Foods Inc's return on total capital.
Peer comparison
Dec 31, 2023