Tyson Foods Inc (TSN)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 52,940,000 | 52,881,000 | 53,270,000 | 53,625,000 | 53,609,000 | 53,282,000 | 52,356,000 | 51,339,000 | 49,522,000 | 47,049,000 | 45,698,000 | 43,242,000 | 42,830,000 | 43,185,000 | 42,609,000 | 43,472,000 | 43,027,000 | 42,405,000 | 41,520,000 | 40,686,000 |
| Total current assets | US$ in thousands | 9,216,000 | 8,722,000 | 8,883,000 | 8,892,000 | 8,953,000 | 9,630,000 | 9,303,000 | 8,997,000 | 10,136,000 | 9,822,000 | 9,208,000 | 8,014,000 | 8,544,000 | 7,598,000 | 7,464,000 | 6,866,000 | 6,946,000 | 6,990,000 | 7,250,000 | 6,183,000 |
| Total current liabilities | US$ in thousands | 6,172,000 | 6,499,000 | 4,948,000 | 5,346,000 | 5,114,000 | 5,313,000 | 4,682,000 | 4,657,000 | 6,034,000 | 6,325,000 | 6,184,000 | 4,612,000 | 4,849,000 | 4,234,000 | 4,273,000 | 4,406,000 | 5,536,000 | 5,513,000 | 5,597,000 | 4,614,000 |
| 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $52,940,000K ÷ ($9,216,000K – $6,172,000K)
= 17.39
The working capital turnover ratio for Tyson Foods Inc has shown fluctuations over the past years, ranging from a low of 11.33 to a high of 30.52. This ratio indicates how efficiently the company is using its working capital to generate sales revenue. A higher turnover ratio suggests that the company is effectively managing its working capital to support its sales activities.
The highest working capital turnover was observed on Dec 31, 2019, and Sep 30, 2019, indicating strong efficiency in converting working capital into sales during those periods. On the other hand, the lowest ratios were recorded on Jun 30, 2022, and Mar 31, 2022, reflecting relatively lower efficiency in utilizing working capital to generate sales revenue during those quarters.
Overall, there seems to be a trend of improving working capital turnover over the past few years, with occasional fluctuations. It would be beneficial for Tyson Foods Inc to continue monitoring and managing its working capital effectively to maintain or further enhance its operational efficiency and financial performance.
Peer comparison
Dec 31, 2023