Tyson Foods Inc (TSN)
Inventory turnover
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 37,383,000 | 36,298,000 | 35,501,000 |
| Inventory | US$ in thousands | 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 | 3,929,000 | 4,149,000 | 3,706,000 |
| Inventory turnover | 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 | 9.51 | 8.75 | 9.58 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $50,454,000K ÷ $5,087,000K
= 9.92
Tyson Foods Inc's inventory turnover ratio has shown a relatively consistent trend over the past 5 years. The company's inventory turnover has ranged from 8.35 to 10.24 times during this period. The inventory turnover ratio measures how many times the company's inventory is sold and replaced over a given period, with a higher ratio indicating more efficient inventory management.
Tyson Foods' inventory turnover peaked at 10.24 in the June 2020 quarter, suggesting that the company was able to sell and replace its inventory more than 10 times during that period. This could indicate effective inventory management, timely production, and efficient sales operations.
On the other hand, the lowest inventory turnover ratio of 8.35 was recorded in the June 2022 quarter. This may indicate a slower rate of inventory turnover, which could potentially lead to higher carrying costs and excess inventory levels. However, it is important to note that a lower inventory turnover ratio may also be influenced by seasonal factors or changes in demand for Tyson Foods' products.
Overall, Tyson Foods Inc has maintained a healthy inventory turnover ratio above 8 times consistently over the past 5 years, reflecting efficient inventory management practices. Monitoring this ratio over time can provide insights into the company's inventory control, production efficiency, and sales performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023