Tyson Foods Inc (TSN)

Number of days of payables

Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019
Payables turnover 19.37 18.77 18.21 20.15 19.41
Number of days of payables days 18.84 19.44 20.04 18.11 18.81

September 30, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 19.37
= 18.84

The number of days of payables for Tyson Foods, Inc. has shown a decreasing trend over the past five years based on the data provided. The number of days of payables decreased from 20.04 days in 2021 to 18.84 days in 2023. This implies that the company is taking fewer days, on average, to pay its suppliers and vendors.

A decreasing number of days of payables can be interpreted as a positive indicator, as it suggests that the company may be managing its accounts payable more efficiently. This could indicate strong bargaining power with suppliers, allowing the company to negotiate better payment terms or manage its working capital effectively.

It is important to note that a significant decrease in the number of days of payables could also indicate potential liquidity issues or strained supplier relationships. However, within the context of Tyson Foods, Inc., the decreasing trend suggests that the company is effectively managing its payables without exhibiting signs of financial distress.

Overall, the decreasing trend in the number of days of payables for Tyson Foods, Inc. reflects positive management of the company's accounts payable and working capital, indicating efficient cash flow management and potentially favorable supplier relationships.


Peer comparison

Sep 30, 2023

Company name
Symbol
Number of days of payables
Tyson Foods Inc
TSN
18.84
Pilgrims Pride Corp
PPC
28.64