Tyson Foods Inc (TSN)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 53,309,000 | 52,881,000 | 53,282,000 | 47,049,000 | 43,185,000 |
| Property, plant and equipment | US$ in thousands | 9,442,000 | 9,634,000 | 8,685,000 | 7,837,000 | 7,596,000 |
| Fixed asset turnover | 5.65 | 5.49 | 6.13 | 6.00 | 5.69 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $53,309,000K ÷ $9,442,000K
= 5.65
The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investment in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio is generally favorable as it indicates that the company is utilizing its fixed assets effectively to generate revenue.
Looking at the trend of Tyson Foods Inc's fixed asset turnover ratio over the past five years, we observe a relatively stable performance. The ratio has consistently remained above 5, indicating a strong ability to generate sales relative to its investment in fixed assets.
In particular, the ratio peaked at 6.13 in September 2022, suggesting that Tyson Foods was exceptionally efficient in utilizing its fixed assets to generate revenue during that period. Although there was a slight decline in the ratio in the following years, it remained above 5, reflecting continued efficiency in leveraging fixed assets to drive sales.
Overall, the trend of Tyson Foods Inc's fixed asset turnover ratio demonstrates a consistent and effective utilization of its fixed assets to generate revenue, which is a positive indicator of the company's operational efficiency and financial performance.
Peer comparison
Sep 30, 2024