Tyson Foods Inc (TSN)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 22.16 | 21.36 | 20.68 | 19.60 | 22.12 | |
| DSO | days | 16.47 | 17.09 | 17.65 | 18.62 | 16.50 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 22.16
= 16.47
Days Sales Outstanding (DSO) measures how long, on average, it takes for a company to collect revenue from its customers. A lower DSO is generally preferred as it indicates faster cash conversion.
Analyzing Tyson Foods Inc's DSO over the past five years, we observe a fluctuating trend. In the latest fiscal year ending September 30, 2024, Tyson Foods Inc's DSO stood at 16.47 days, showing an improvement from the prior year where it was 17.09 days.
Comparing the DSO to two years earlier, there appears to have been a downward trend in efficiency in collecting receivables, with the DSO rising to 17.65 days in the fiscal year ending September 30, 2022, and then slightly increasing to 18.62 days in the fiscal year ending September 30, 2021. However, the DSO had reduced in the fiscal year ending September 30, 2020, to 16.50 days.
Overall, the recent improvement in DSO indicates that Tyson Foods Inc has been more effective in collecting payments from customers. However, it is important to monitor any significant deviations from this trend to ensure efficient cash flow management and timely collection of accounts receivable.
Peer comparison
Sep 30, 2024