Tyson Foods Inc (TSN)
Cash conversion cycle
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 38.17 | 36.69 | 36.87 | 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 |
| Days of sales outstanding (DSO) | days | 16.47 | 16.42 | 16.28 | 15.60 | 17.09 | 16.79 | — | 15.63 | 17.65 | — | — | — | 18.62 | — | — | — | — | — | — | — |
| Number of days of payables | days | 17.65 | 16.70 | 16.36 | 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 |
| Cash conversion cycle | days | 36.99 | 36.41 | 36.78 | 33.43 | 36.95 | 38.57 | 23.12 | 38.95 | 41.39 | 24.81 | 22.84 | 20.25 | 38.05 | 21.08 | 21.46 | 18.57 | 19.15 | 18.76 | 19.42 | 20.61 |
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 few quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
In the most recent quarter, ending on September 30, 2024, Tyson Foods Inc had a cash conversion cycle of 36.99 days. This means that on average, it took the company approximately 37 days to convert its investments in inventory into cash from sales.
Looking at historical trends, we can see that the cash conversion cycle has been relatively stable over the past few quarters, with some minor fluctuations. In general, the company has been able to manage its cash conversion cycle efficiently, with some quarters showing shorter cycles indicating quicker turnover of inventory and cash.
The longer the cash conversion cycle, the more working capital is tied up in operations, which can have implications for the company's liquidity and financial health. Therefore, monitoring and managing the cash conversion cycle is crucial for Tyson Foods Inc to ensure efficient operations and cash flow management.
Peer comparison
Sep 30, 2024