Treehouse Foods Inc (THS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,350,500 | 1,335,800 | 1,899,500 | 2,250,400 | 2,146,100 |
| Total assets | US$ in thousands | 4,106,600 | 4,253,900 | 5,207,800 | 5,485,700 | 5,139,400 |
| Debt-to-assets ratio | 0.33 | 0.31 | 0.36 | 0.41 | 0.42 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,350,500K ÷ $4,106,600K
= 0.33
The debt-to-assets ratio of Treehouse Foods Inc has exhibited a fluctuating trend over the past five years. The ratio decreased slightly from 0.41 in 2019 to 0.40 in 2020 before experiencing a more significant decline to 0.37 in 2021. However, the ratio increased marginally in 2022 to 0.33 before rising again to 0.34 in 2023.
A decreasing debt-to-assets ratio indicates that the company is becoming less reliant on debt financing in relation to its total assets, which can be a positive sign for financial stability. Conversely, an increasing ratio may suggest a higher level of debt relative to the company's assets, potentially indicating a higher financial risk.
It is important for investors and stakeholders to monitor changes in the debt-to-assets ratio over time to assess the company's financial health and its ability to meet its debt obligations.
Peer comparison
Dec 31, 2023