Treehouse Foods Inc (THS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,980,000 | 4,106,600 | 4,253,900 | 5,207,000 | 5,485,700 |
| Total stockholders’ equity | US$ in thousands | 1,548,900 | 1,664,800 | 1,687,000 | 1,845,400 | 1,865,000 |
| Financial leverage ratio | 2.57 | 2.47 | 2.52 | 2.82 | 2.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,980,000K ÷ $1,548,900K
= 2.57
Treehouse Foods Inc's financial leverage ratio has been gradually decreasing from 2.94 in December 2020 to 2.57 in December 2024. This indicates that the company has been reducing its reliance on debt to finance its operations over the years. A lower financial leverage ratio suggests that Treehouse Foods Inc has been using less debt relative to its equity, which can be seen as a positive sign for the company's financial stability and risk management. The decreasing trend in the financial leverage ratio may imply that the company is becoming more financially conservative and potentially improving its overall financial health.
Peer comparison
Dec 31, 2024