Tyson Foods Inc (TSN)
Days of inventory on hand (DOH)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 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 | 9.51 | 8.75 | 9.58 | |
| DOH | days | 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 | 38.36 | 41.72 | 38.10 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 9.92
= 36.80
The days of inventory on hand (DOH) for Tyson Foods Inc has shown some fluctuations over the past years. The trend indicates that the company has been able to efficiently manage its inventory levels. Generally, a lower DOH is preferred as it signifies that the company is selling its inventory quickly.
The DOH ranged from a low of 35.63 days to a high of 43.72 days over the last few years. The most recent DOH figure of 36.80 days suggests that Tyson Foods Inc is currently holding inventory for approximately 36.80 days before it is sold. This is a relatively efficient level compared to historical data.
The decreasing trend in the DOH from 41.72 days in Dec 2019 to 36.80 days in Dec 2023 indicates that the company has been managing its inventory more effectively in recent years. However, it is essential for Tyson Foods Inc to monitor and optimize its inventory levels to ensure that they are not tying up excess capital in unsold goods.
In conclusion, Tyson Foods Inc's days of inventory on hand metric reflects the company's ability to efficiently manage inventory, and the recent decrease in DOH is a positive sign for the company's operations.
Peer comparison
Dec 31, 2023