Treehouse Foods Inc (THS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 96,500 | 34,400 | 57,100 | 113,000 | 158,200 | 202,400 | 176,300 | 110,900 | 66,000 | -20,400 | -9,900 | 16,800 | 41,500 | 139,400 | 169,900 | 195,400 | 121,900 | 82,300 | -37,100 | -105,300 |
| Interest expense (ttm) | US$ in thousands | 63,400 | 64,100 | 69,000 | 72,600 | 74,800 | 76,600 | 73,200 | 71,000 | 69,900 | 70,000 | 69,000 | 70,500 | 78,900 | 87,000 | 97,400 | 105,100 | 104,800 | 101,800 | 102,200 | 102,100 |
| Interest coverage | 1.52 | 0.54 | 0.83 | 1.56 | 2.11 | 2.64 | 2.41 | 1.56 | 0.94 | -0.29 | -0.14 | 0.24 | 0.53 | 1.60 | 1.74 | 1.86 | 1.16 | 0.81 | -0.36 | -1.03 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $96,500K ÷ $63,400K
= 1.52
Treehouse Foods Inc's interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income. The interest coverage ratio below 1 suggests that the company may have difficulty meeting its interest payments with its operating income alone, which could signal financial distress.
Looking at the trend over the past few years, Treehouse Foods Inc's interest coverage ratio has fluctuated significantly, dipping into negative territory in some quarters. This indicates that there have been periods where the company's operating income was insufficient to cover its interest expenses. However, there has been some improvement in recent quarters, with the interest coverage ratio showing an increasing trend, reaching above 1 in several quarters.
It is important for investors and stakeholders to closely monitor Treehouse Foods Inc's interest coverage ratio to ensure that the company's profitability and operating performance are sufficient to cover its interest expenses and maintain financial stability.
Peer comparison
Dec 31, 2024