Tyson Foods Inc (TSN)
Working capital turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 53,309,000 | 52,881,000 | 53,282,000 | 47,049,000 | 43,185,000 |
| Total current assets | US$ in thousands | 9,751,000 | 8,722,000 | 9,630,000 | 9,822,000 | 7,598,000 |
| Total current liabilities | US$ in thousands | 4,787,000 | 6,499,000 | 5,313,000 | 6,325,000 | 4,234,000 |
| Working capital turnover | 10.74 | 23.79 | 12.34 | 13.45 | 12.84 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $53,309,000K ÷ ($9,751,000K – $4,787,000K)
= 10.74
The working capital turnover ratio for Tyson Foods Inc has fluctuated over the past five years, indicating varying efficiency in utilizing its working capital to generate sales.
In 2024, the working capital turnover ratio stood at 10.74, representing a decrease from the previous year's ratio of 23.79. This decline suggests that Tyson Foods may have experienced challenges in efficiently converting its working capital into sales during the most recent fiscal period.
Comparing the 2024 ratio to earlier years, we observe that it is lower than the ratios recorded in 2022 (12.34) and 2021 (13.45) but higher than the ratio in 2020 (12.84). This suggests that, despite the decrease from the previous year, Tyson Foods' working capital turnover in 2024 remained relatively strong compared to certain historical periods.
Overall, fluctuations in the working capital turnover ratio can provide insights into Tyson Foods' ability to manage its working capital effectively and to efficiently generate revenue from its operating activities. It is essential for the company to carefully monitor and optimize this ratio to ensure sustainable financial performance in the future.
Peer comparison
Sep 30, 2024