Tyson Foods Inc (TSN)
Fixed asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 52,881,000 | 53,282,000 | 47,049,000 | 43,185,000 | 42,405,000 |
| Property, plant and equipment | US$ in thousands | 9,634,000 | 8,685,000 | 7,837,000 | 7,596,000 | 7,282,000 |
| Fixed asset turnover | 5.49 | 6.13 | 6.00 | 5.69 | 5.82 |
September 30, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $52,881,000K ÷ $9,634,000K
= 5.49
The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate sales revenue. A higher ratio indicates better efficiency in asset utilization.
Looking at Tyson Foods, Inc.'s fixed asset turnover over the past five years, we can observe a fluctuating trend. In 2023, the fixed asset turnover ratio stood at 5.49, showing a decrease from the previous year's 6.13. This decline suggests that Tyson Foods was less efficient in utilizing its fixed assets to generate sales relative to the previous year.
Similarly, in 2022, the ratio was 6.13, which was a slight increase from 2021's 6.00. This may indicate improved efficiency in utilizing fixed assets to generate sales.
In 2020, the fixed asset turnover ratio was 5.69, which was slightly lower than the prior year. This suggests a reduction in the company's ability to generate sales from its fixed assets.
In 2019, the ratio was 5.82, displaying a decrease from the previous year. This decline may indicate that Tyson Foods was less effective in utilizing its fixed assets to generate sales compared to the prior-year performance.
It's important to note that fluctuations in the fixed asset turnover ratio can be attributed to changes in sales or fixed asset values. Further analysis of the company's financial statements and industry trends would provide more insight into the factors driving these fluctuations.
Peer comparison
Sep 30, 2023