Treehouse Foods Inc (THS)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 1,664,800 | 1,687,000 | 1,845,400 | 1,865,000 | 1,830,900 |
| Debt-to-capital ratio | 0.45 | 0.44 | 0.51 | 0.55 | 0.54 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,350,500K ÷ ($1,350,500K + $1,664,800K)
= 0.45
The debt-to-capital ratio of Treehouse Foods Inc has shown a fluctuating trend over the past five years, ranging from 0.45 to 0.54. In 2023, the ratio was calculated at 0.46, a slight increase from the previous year's 0.45. This indicates that the company's reliance on debt to finance its operations relative to its total capital slightly increased in 2023.
While the debt-to-capital ratio has varied, it has generally remained in the range of 0.45 to 0.54 over the period, suggesting a relatively stable level of debt in relation to the total capital structure of the company. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial leverage and risk exposure. The trend in the debt-to-capital ratio can provide insights into the company's financial health and its ability to meet debt obligations in the long term.
Peer comparison
Dec 31, 2023