Tyson Foods Inc (TSN)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 23.39 21.36 21.73 — 23.36 20.68 — — — 19.60 — — — — — — — — — —
Payables turnover 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 19.41 18.54 20.76
Working capital turnover 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 28.71 25.12 25.93

Tyson Foods Inc's activity ratios provide insights into its efficiency in managing its assets and liabilities.

1. Inventory turnover: The company consistently maintains a healthy inventory turnover ratio, ranging from 8.35 to 10.24 over the past five quarters. This indicates that Tyson Foods efficiently sells its inventory and converts it into sales within a relatively short period.

2. Receivables turnover: The receivables turnover ratio fluctuates significantly, with values ranging from 19.60 to 23.39 in the available data. This implies that Tyson Foods has been effective in collecting its accounts receivable over time, although there are some fluctuations which may need to be further investigated.

3. Payables turnover: Tyson Foods demonstrates a stable payables turnover ratio, varying between 18.54 and 22.12 across the quarters. This suggests that the company manages its trade payables effectively, taking advantage of trade credit terms while maintaining good relationships with suppliers.

4. Working capital turnover: The working capital turnover ratio experienced fluctuations, with figures ranging from 11.33 to 30.52. A higher ratio indicates that Tyson Foods efficiently utilizes its working capital to generate sales. However, the significant variation in this ratio warrants attention to investigate the reasons behind the fluctuations observed.

Overall, Tyson Foods Inc's activity ratios show strong efficiency in managing inventory and payables, along with reasonably effective management of receivables and working capital. Monitoring these ratios over time can provide valuable insights into the company's operational performance and financial health.

Average number of days

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
Days of inventory on hand (DOH) days 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 38.36 41.72 38.10
Days of sales outstanding (DSO) days 15.60 17.09 16.79 — 15.63 17.65 — — — 18.62 — — — — — — — — — —
Number of days of payables days 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 18.81 19.69 17.58

Days of inventory on hand (DOH) measures how efficiently Tyson Foods manages its inventory. The trend shows a slight decrease in DOH over the recent quarters, indicating an improvement in inventory turnover and potentially more efficient inventory management.

Days of sales outstanding (DSO) reflects how quickly Tyson Foods collects its accounts receivable. The data is inconsistent, with some missing values, indicating variability in the collection process. More detailed information is needed to draw conclusions from this ratio.

Number of days of payables represents how long Tyson Foods takes to pay its suppliers. The trend suggests a relatively stable payment period, with minor fluctuations over the quarters. This consistent payment behavior can help maintain good relationships with suppliers but may also indicate missed opportunities for cash flow optimization.

Long-term

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
Fixed asset turnover 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 5.82 5.71 5.74
Total asset turnover 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 1.29 1.23 1.26

To analyze Tyson Foods Inc's long-term activity ratios, we primarily focus on the fixed asset turnover and total asset turnover ratios.

1. Fixed Asset Turnover:
- The fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate sales revenue. Tyson Foods Inc's fixed asset turnover has fluctuated over the periods, ranging from a low of 5.47 to a high of 6.27.
- The trend indicates that Tyson Foods has been effectively using its fixed assets to generate sales, with the ratio generally trending upwards, peaking at 6.27 in the first quarter of 2022.
- A higher fixed asset turnover ratio suggests that the company is efficiently managing its fixed assets to generate sales, which can be a positive sign of operational efficiency and effective asset utilization.

2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company uses all its assets to generate sales. Tyson Foods Inc's total asset turnover has remained relatively stable over the periods, with fluctuations between 1.30 to 1.21.
- The trend shows that Tyson Foods has been consistent in utilizing its total assets to generate sales revenue, with the ratio hovering around 1.30 in recent quarters.
- A higher total asset turnover ratio indicates that the company is efficient in utilizing all its assets to generate sales, reflecting good asset management and operational performance.

In conclusion, based on the analysis of long-term activity ratios for Tyson Foods Inc, the company has demonstrated efficiency in utilizing both fixed and total assets to generate sales revenue over the analyzed periods. The trends suggest effective asset management practices, which can positively impact the company's overall financial performance and sustainability.