Treehouse Foods Inc (THS)

Solvency ratios

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
Debt-to-assets ratio 0.33 0.34 0.35 0.33 0.31 0.34 0.34 0.35 0.36 0.38 0.38 0.38 0.41 0.42 0.40 0.42 0.42 0.42 0.41 0.41
Debt-to-capital ratio 0.45 0.47 0.47 0.45 0.44 0.51 0.49 0.50 0.51 0.51 0.51 0.51 0.55 0.55 0.54 0.55 0.54 0.55 0.54 0.52
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
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

Treehouse Foods Inc's solvency ratios provide insights into the company's ability to meet its long-term financial obligations.

- Debt-to-assets ratio: The trend over the past eight quarters shows relatively stable levels, ranging from 0.33 to 0.36. This indicates that around 33% to 36% of the company's total assets are financed by debt. The stable ratio suggests that the company has been effectively managing its debt relative to its assets.

- Debt-to-capital ratio: This ratio reflects the proportion of total capital that is funded by debt. The data shows a similar trend to the debt-to-assets ratio, with levels ranging from 0.45 to 0.52. This indicates that Treehouse Foods Inc relies on debt for around 45% to 52% of its total capital.

- Debt-to-equity ratio: This ratio indicates the extent to which the company relies on debt financing relative to shareholders' equity. Treehouse Foods Inc's debt-to-equity ratio fluctuates between 0.83 and 1.10 over the quarters, showing some variability. The ratios above 1 suggest that the company has more debt than equity in its capital structure.

- Financial leverage ratio: This ratio measures the company's financial leverage, indicating how much debt is used to finance assets. The data indicates a downward trend from 3.03 to 2.47 over the quarters, which suggests a reduction in financial risk and reliance on debt to fund operations.

Overall, Treehouse Foods Inc's solvency ratios show that the company has maintained a stable debt level relative to assets and capital, although there has been some fluctuation in the debt-to-equity ratio. The decreasing financial leverage ratio indicates a potential improvement in the company's financial risk profile.

Coverage ratios

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
Interest coverage 2.03 1.69 0.37 -0.58 -0.99 -1.39 -0.02 0.60 0.73 1.04 1.24 1.27 0.49 0.84 -1.48 -3.35 -2.97 -3.33 -1.19 0.37

Treehouse Foods Inc's interest coverage ratio fluctuated over the past eight quarters, ranging from as low as 0.11 to as high as 11.47. Generally, the interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.

The interest coverage ratio above 1 implies that the company is generating enough operating income to cover its interest expenses. In the most recent quarter, the ratio stood at 4.39, indicating that Treehouse Foods Inc's operating income was 4.39 times its interest expenses.

The significant increase in the interest coverage ratio over the last few quarters, with the ratio exceeding 1 in the last four quarters, suggests an improvement in the company's financial stability and ability to service its debt.

However, it is important to note that a higher interest coverage ratio does not necessarily mean lower financial risk, as the ratio does not account for other fixed financial obligations or potential variability in operating income. Thus, other financial metrics and analysis should also be considered in assessing Treehouse Food Inc's overall financial health.