Tyson Foods Inc (TSN)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 22.16 22.22 22.43 23.39 21.36 21.73 — 23.36 20.68 — — — 19.60 — — — — — — —
Payables turnover 20.68 21.85 22.31 19.24 19.37 20.57 20.62 18.97 18.77 19.31 19.17 19.93 18.21 20.53 19.94 18.88 20.15 21.63 22.12 19.79
Working capital turnover 10.74 11.15 12.20 17.39 23.79 13.54 15.12 13.96 12.34 11.33 11.83 12.07 13.45 15.11 12.71 11.59 12.84 13.35 17.67 30.52

The inventory turnover ratio for Tyson Foods Inc has been relatively stable over the analyzed periods, ranging from 8.35 to 10.24 times. This indicates that the company efficiently manages its inventory, with an average of around 9 times turnover per year.

The receivables turnover ratio fluctuated between 19.60 and 23.39 times, reflecting the number of times Tyson Foods collects outstanding receivables during the year. Overall, the company has maintained a good level of efficiency in collecting payments from customers.

The payables turnover ratio for Tyson Foods ranged from 18.21 to 22.31 times, highlighting how quickly the company pays its suppliers. A higher turnover indicates a shorter payment period, which can be beneficial for cash flow management.

The working capital turnover ratio, showing how efficiently the company utilizes its working capital to generate sales, varied from 10.74 to 30.52 times. A higher turnover implies that Tyson Foods effectively utilizes its working capital to support its operations and generate revenue.

Overall, the activity ratios suggest that Tyson Foods Inc is effectively managing its inventory, receivables, payables, and working capital to support its business operations and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 38.17 36.69 36.87 36.80 38.70 39.52 40.82 42.56 43.18 43.72 41.88 38.56 39.47 38.85 39.77 37.89 37.26 35.63 35.92 39.05
Days of sales outstanding (DSO) days 16.47 16.42 16.28 15.60 17.09 16.79 — 15.63 17.65 — — — 18.62 — — — — — — —
Number of days of payables days 17.65 16.70 16.36 18.98 18.84 17.75 17.70 19.24 19.44 18.91 19.04 18.31 20.04 17.78 18.30 19.33 18.11 16.88 16.50 18.44

Days of Inventory on Hand (DOH) measures how many days, on average, inventory is held before being sold. Tyson Foods Inc's DOH has been fluctuating over the past several quarters but generally trending downwards. This indicates that the company is managing its inventory levels more efficiently, potentially reducing carrying costs and the risk of obsolescence.

Days of Sales Outstanding (DSO) shows the average number of days it takes for the company to collect payments from customers. Tyson Foods Inc has shown consistency in its DSO, with a slight increase in recent quarters. This may suggest the company is extending credit more frequently to customers, which could impact cash flows and liquidity, requiring close monitoring.

Number of Days of Payables reflects how quickly the company pays its suppliers. Tyson Foods Inc has been maintaining its payables days relatively stable, indicating a consistent approach to managing supplier payments. However, if the payables days extend significantly, it may signal liquidity issues or strained relationships with suppliers.

Overall, Tyson Foods Inc's activity ratios suggest improvements in inventory management efficiency, stability in collections from customers, and steady management of supplier payments. Monitoring these ratios over time can provide valuable insights into the company's operational effectiveness and financial health.

Long-term

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
Fixed asset turnover 5.65 5.67 5.51 5.47 5.49 5.54 5.73 5.88 6.13 6.24 6.27 6.18 6.00 5.92 5.64 5.59 5.69 5.67 5.82 5.83
Total asset turnover 1.44 1.41 1.41 1.44 1.46 1.45 1.46 1.46 1.45 1.44 1.43 1.34 1.30 1.28 1.25 1.21 1.25 1.24 1.29 1.28

The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. Tyson Foods Inc's fixed asset turnover has been relatively stable, ranging between 5.47 and 6.27 over the past two years. This indicates that the company is efficient in utilizing its fixed assets to generate sales, with a higher ratio suggesting better asset utilization.

On the other hand, the total asset turnover ratio reflects how effectively a company is generating sales from all its assets, including both fixed and current assets. Tyson Foods Inc's total asset turnover has also been consistent, fluctuating between 1.21 and 1.46 in the same period. This indicates that the company is effectively using its total assets to generate sales, with a higher ratio implying better asset utilization.

Overall, based on the trend in both fixed asset turnover and total asset turnover ratios, Tyson Foods Inc appears to be efficiently utilizing its assets to drive sales, which is a positive indicator of operational efficiency and financial performance.