Tyson Foods Inc (TSN)

Days of Sales Outstanding (DSO) indicates the average number of days that it takes for a company to collect payment after making a sale. A lower DSO value is generally favorable as it signifies that a company is collecting payments more quickly, thus improving its cash flow and working capital management.

Analyzing the DSO trend for Tyson Foods, Inc. from 2019 to 2023, we observe that the DSO decreased from 18.70 days in 2019 to 17.09 days in 2023. This reduction in DSO over the period suggests that Tyson Foods has improved its collection process, enabling the company to convert its sales into cash more efficiently.

The decrease in DSO indicates that Tyson Foods has become more effective in managing its accounts receivable, possibly through more efficient credit policies, improved collection processes, or better customer credit risk assessment. This improvement in DSO could also indicate a more favorable customer base that pays promptly.

Overall, the decreasing trend of DSO for Tyson Foods is a positive signal as it suggests enhanced liquidity and more efficient working capital management, which can have a positive impact on the company's financial health and ability to invest in growth opportunities. However, it is important to consider other factors in conjunction with DSO to gain a comprehensive understanding of the company's financial performance.

Peer comparison

Sep 30, 2023