Tyson Foods Inc (TSN)
Total asset turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 52,881,000 | 53,282,000 | 47,049,000 | 43,185,000 | 42,405,000 |
| Total assets | US$ in thousands | 36,251,000 | 36,821,000 | 36,309,000 | 34,456,000 | 32,918,000 |
| Total asset turnover | 1.46 | 1.45 | 1.30 | 1.25 | 1.29 |
September 30, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $52,881,000K ÷ $36,251,000K
= 1.46
The total asset turnover ratio measures how efficiently a company utilizes its assets to generate sales. A higher ratio signifies that the company effectively utilizes its assets to generate revenue.
Looking at the trend of Tyson Foods, Inc.'s total asset turnover over the past five years, the ratio has shown a consistent increase. In September 2023, the total asset turnover ratio was 1.46, indicating that the company generated $1.46 in sales for every $1 of assets. This represents an improvement from the previous year's ratio of 1.45.
The increase in the total asset turnover ratio from 2021 to 2023 suggests that Tyson Foods, Inc. has been effectively utilizing its assets to drive sales. This improvement may be attributed to factors such as improved operational efficiency, better inventory management, or strategic investments in productive assets.
Overall, the increasing trend in total asset turnover reflects positively on Tyson Foods, Inc.'s ability to generate sales relative to its asset base. It indicates that the company is making efficient use of its assets to drive revenue growth, which could potentially lead to enhanced profitability and shareholder value in the long term.
Peer comparison
Sep 30, 2023