Tyson Foods Inc (TSN)
Inventory turnover
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 49,682,000 | 50,066,000 | 50,054,000 | 50,454,000 | 50,250,000 | 49,791,000 | 49,212,000 | 47,988,000 | 46,614,000 | 44,519,000 | 43,493,000 | 42,158,000 | 40,523,000 | 40,038,000 | 37,889,000 | 37,709,000 | 37,801,000 | 37,696,000 | 38,536,000 | 37,920,000 |
| Inventory | US$ in thousands | 5,195,000 | 5,033,000 | 5,056,000 | 5,087,000 | 5,328,000 | 5,391,000 | 5,504,000 | 5,596,000 | 5,514,000 | 5,332,000 | 4,990,000 | 4,454,000 | 4,382,000 | 4,262,000 | 4,128,000 | 3,915,000 | 3,859,000 | 3,680,000 | 3,792,000 | 4,057,000 |
| Inventory turnover | 9.56 | 9.95 | 9.90 | 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 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $49,682,000K ÷ $5,195,000K
= 9.56
Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory by analyzing how many times its inventory is sold and replaced over a specific period. In the case of Tyson Foods Inc, the inventory turnover ratio has been relatively stable over the past few years, ranging between 8.35 and 10.24.
A higher inventory turnover ratio indicates that the company is selling its products quickly and efficiently, minimizing the risk of excess or obsolete inventory. Tyson Foods Inc's inventory turnover ratio has been consistently above 9 over the last few quarters, suggesting that the company has been effective in managing its inventory levels and maintaining a healthy balance between supply and demand.
The slight fluctuations in the inventory turnover ratio may be attributed to seasonal variations in demand or changes in inventory management practices. Overall, a consistently high inventory turnover ratio like that of Tyson Foods Inc indicates good inventory management and operational efficiency within the company's supply chain.
Peer comparison
Sep 30, 2024
Sep 30, 2024