Tyson Foods Inc (TSN)
Days of inventory on hand (DOH)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 9.56 | 9.43 | 8.45 | 9.25 | 9.80 | |
| DOH | days | 38.17 | 38.70 | 43.18 | 39.47 | 37.26 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.56
= 38.17
Tyson Foods Inc's Days of Inventory on Hand (DOH) has shown some fluctuations over the past five years. The company's DOH was 38.17 days as of September 30, 2024, which decreased slightly compared to the previous year. This suggests that Tyson Foods managed its inventory more efficiently in 2024 by reducing the number of days it takes to sell its inventory.
Looking back at the trend, we see that in 2023, the DOH was 38.70 days, which was slightly higher than in 2024. However, in 2022, there was a noticeable increase in DOH to 43.18 days, indicating that the company was holding inventory for a longer period before selling it. This could have tied up more of the company's cash flow in inventory, potentially impacting its liquidity.
In 2021, Tyson Foods managed to bring down its DOH to 39.47 days, showing some improvement compared to the previous year. The most efficient year in terms of inventory management was 2020 when the company had a DOH of 37.26 days, indicating a shorter time to sell inventory.
Overall, Tyson Foods has shown some variability in its inventory management efficiency over the years, with a general trend of reducing the number of days of inventory on hand in recent years, which is a positive sign for the company's operations and liquidity.
Peer comparison
Sep 30, 2024