Tyson Foods Inc (TSN)
Cash conversion cycle
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 38.17 | 38.70 | 43.18 | 39.47 | 37.26 |
| Days of sales outstanding (DSO) | days | 16.47 | 17.09 | 17.65 | 18.62 | 16.50 |
| Number of days of payables | days | 17.65 | 18.84 | 19.44 | 20.04 | 18.11 |
| Cash conversion cycle | days | 36.99 | 36.95 | 41.39 | 38.05 | 35.65 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 38.17 + 16.47 – 17.65
= 36.99
The cash conversion cycle of Tyson Foods Inc has shown some fluctuations over the past five years. In 2024, the company's cash conversion cycle was 36.99 days, slightly higher than the previous year's 36.95 days. This indicates that it took Tyson Foods Inc almost 37 days to convert its investments in raw materials into cash from sales.
Compared to 2022, when the cash conversion cycle was 41.39 days, there was an improvement in efficiency in 2024. However, the cycle was shorter in 2021 at 38.05 days and in 2020 at 35.65 days, suggesting that the company was faster in converting its inventory into sales and ultimately into cash during these years.
Overall, although there have been fluctuations in Tyson Foods Inc's cash conversion cycle over the past five years, it is essential for the company to continue monitoring and managing this metric effectively to optimize its working capital management and overall financial performance.
Peer comparison
Sep 30, 2024