Tyson Foods Inc (TSN)
Payables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 50,250,000 | 46,614,000 | 40,523,000 | 37,801,000 | 37,383,000 |
| Payables | US$ in thousands | 2,594,000 | 2,483,000 | 2,225,000 | 1,876,000 | 1,926,000 |
| Payables turnover | 19.37 | 18.77 | 18.21 | 20.15 | 19.41 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $50,250,000K ÷ $2,594,000K
= 19.37
The payables turnover ratio measures the efficiency of a company in paying its suppliers and managing its accounts payable. A higher payables turnover ratio generally indicates that a company is paying off its suppliers more quickly.
Analyzing the payables turnover ratio for Tyson Foods, Inc. over the past five years, we observe a fluctuating trend. The ratio has ranged from 18.21 to 20.15, with the most recent value being 19.37 as of September 30, 2023. This indicates that, on average, Tyson Foods, Inc. is taking approximately 19.37 days to pay off its suppliers' invoices.
The increase in the payables turnover ratio from 18.21 in 2021 to 20.15 in 2020 suggests that Tyson Foods, Inc. improved its efficiency in managing its accounts payable by paying its suppliers more rapidly. However, there was a slight drop in the ratio to 18.77 in 2022 before the recent increase to 19.37 in 2023.
Overall, the payables turnover ratio for Tyson Foods, Inc. demonstrates a relatively consistent and efficient management of its accounts payable over the past five years, with the company ensuring timely payments to its suppliers. However, it is important to consider industry benchmarks and compare the ratio with that of its peers for a comprehensive assessment of its payables management efficiency.
Peer comparison
Sep 30, 2023