Treehouse Foods Inc (THS)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,980,000 | 3,969,400 | 3,905,000 | 3,961,600 | 4,106,600 | 4,318,500 | 4,380,400 | 4,254,000 | 4,253,900 | 5,188,100 | 5,267,400 | 5,228,200 | 5,207,000 | 5,082,300 | 5,081,400 | 5,142,500 | 5,485,700 | 5,385,900 | 5,242,000 | 5,271,000 |
| Total stockholders’ equity | US$ in thousands | 1,548,900 | 1,552,600 | 1,550,100 | 1,608,100 | 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 |
| Financial leverage ratio | 2.57 | 2.56 | 2.52 | 2.46 | 2.47 | 2.55 | 2.52 | 2.50 | 2.52 | 3.03 | 2.90 | 2.83 | 2.82 | 2.74 | 2.73 | 2.76 | 2.94 | 2.95 | 2.91 | 2.95 |
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 fluctuated over the period under review, ranging from a low of 2.46 on March 31, 2024, to a high of 3.03 on September 30, 2022. The ratio measures the company's reliance on debt financing relative to its equity, indicating the proportion of the company's assets that are financed through debt. A higher financial leverage ratio suggests higher financial risk due to greater reliance on debt, while a lower ratio indicates a lower risk and greater stability.
Overall, the trend in Treehouse Foods Inc's financial leverage ratio appears to have been relatively stable, hovering around the 2.5 to 3 range with minor fluctuations. It is essential for investors and analysts to closely monitor the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risk effectively.
Peer comparison
Dec 31, 2024