Treehouse Foods Inc (THS)
Debt-to-equity ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,350,500 | 1,475,900 | 1,539,300 | 1,394,700 | 1,335,800 | 1,782,300 | 1,775,400 | 1,814,900 | 1,899,500 | 1,912,200 | 1,943,600 | 1,963,800 | 2,250,400 | 2,257,600 | 2,122,200 | 2,212,800 | 2,146,100 | 2,214,200 | 2,311,300 | 2,337,500 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,830,900 | 1,806,000 | 1,983,300 | 2,141,700 |
| Debt-to-equity ratio | 0.81 | 0.87 | 0.89 | 0.82 | 0.79 | 1.04 | 0.98 | 0.98 | 1.03 | 1.03 | 1.05 | 1.05 | 1.21 | 1.24 | 1.18 | 1.24 | 1.17 | 1.23 | 1.17 | 1.09 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,350,500K ÷ $1,664,800K
= 0.81
The debt-to-equity ratio of Treehouse Foods Inc has shown some fluctuations over the past eight quarters. In Q4 2023, the ratio stands at 0.84, indicating that the company has $0.84 in debt for every $1 of equity. This represents a slight decrease from the previous quarter, where the ratio was 0.91. The improvement in the debt-to-equity ratio suggests that the company has reduced its reliance on debt financing in relation to equity.
Comparing the current ratio to previous quarters, it is evident that the Q4 2023 ratio of 0.84 is lower than the ratios from Q3 and Q2 of 2023, which were 0.91 and 0.92, respectively. This decline could indicate that Treehouse Foods Inc has been actively managing its debt levels or increasing its equity base to strengthen its financial position.
Looking further back, in Q4 2022, the ratio was 0.83, showing a slight increase compared to the most recent quarter. Despite this fluctuation, Treehouse Foods Inc appears to have maintained a generally stable debt-to-equity ratio over the past year.
Furthermore, when analyzing the trend over the past eight quarters, it is notable that the company experienced a peak in its debt-to-equity ratio in Q3 2022 at 1.10. Since then, the ratio has been on a downward trend, indicating a positive shift towards a more balanced capital structure with less reliance on debt.
Overall, Treehouse Foods Inc's debt-to-equity ratio has shown variability over the quarters but appears to be currently trending downwards, suggesting prudent financial management and a potentially stronger financial position. However, further analysis of the company's overall financial health and market conditions would be necessary to form a comprehensive assessment.
Peer comparison
Dec 31, 2023