Treehouse Foods Inc (THS)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,106,600 | 4,318,500 | 4,380,400 | 4,254,000 | 4,253,900 | 5,188,100 | 5,267,400 | 5,228,200 | 5,207,800 | 5,082,300 | 5,081,400 | 5,142,500 | 5,485,700 | 5,385,900 | 5,242,000 | 5,271,000 | 5,139,400 | 5,261,200 | 5,592,900 | 5,765,000 |
| 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 |
| Financial leverage ratio | 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 | 2.81 | 2.91 | 2.82 | 2.69 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,106,600K ÷ $1,664,800K
= 2.47
Treehouse Foods Inc's financial leverage ratio has been fluctuating in recent quarters. The ratio indicates the level of debt financing used by the company to support its operations and growth.
The trend shows that the company's financial leverage ratio has been decreasing in the last few quarters, from a high of 3.03 in Q3 2022 to a low of 2.47 in Q4 2023. This suggests that Treehouse Foods Inc has been reducing its reliance on debt to finance its operations.
A lower financial leverage ratio generally indicates a lower level of financial risk and more conservative financial management. It also signifies that the company has a greater proportion of equity financing relative to debt financing, which can provide more stability in times of economic uncertainty.
Overall, the decreasing trend in Treehouse Foods Inc's financial leverage ratio indicates a positive shift towards a more conservative capital structure and improved financial stability. However, it is important to closely monitor future trends to ensure sustainable and balanced growth.
Peer comparison
Dec 31, 2023