Tyson Foods Inc (TSN)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 9.56 | 9.95 | 9.90 | 9.92 | 9.43 | 9.24 | 8.94 | 8.58 | 8.45 | 8.35 | 8.72 | 9.47 | 9.25 | 9.39 | 9.18 | 9.63 | 9.80 | 10.24 | 10.16 | 9.35 | |
| DOH | days | 38.17 | 36.69 | 36.87 | 36.80 | 38.70 | 39.52 | 40.82 | 42.56 | 43.18 | 43.72 | 41.88 | 38.56 | 39.47 | 38.85 | 39.77 | 37.89 | 37.26 | 35.63 | 35.92 | 39.05 |
September 30, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.56
= 38.17
To analyze Tyson Foods Inc's days of inventory on hand (DOH) over the given period, we observe fluctuations in this ratio. DOH measures the number of days a company holds its inventory before selling it.
Tyson Foods Inc's DOH ranged from a low of 35.63 days to a high of 43.72 days over the past five years. The trend indicates some variability in managing inventory levels, with a general upward trend in recent quarters. Higher DOH values suggest that the company is taking longer to sell its inventory, potentially tying up more capital in unsold goods.
The increasing trend in DOH could indicate challenges in inventory management, such as overstocking or slowing sales. A high DOH may also signal potential liquidity issues or inefficiencies in the supply chain. On the other hand, a lower DOH may indicate efficient inventory turnover, but excessively low levels could lead to stockouts and lost sales opportunities.
Overall, Tyson Foods Inc should closely monitor its inventory levels and strive to strike a balance between holding enough inventory to meet demand and avoiding excess stocks that tie up capital. Regular evaluations of DOH can help the company optimize its inventory management practices and improve its overall financial performance.
Peer comparison
Sep 30, 2024