Tyson Foods Inc (TSN)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 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 | 38.36 | 41.72 | 38.10 |
| Days of sales outstanding (DSO) | days | 15.60 | 17.09 | 16.79 | — | 15.63 | 17.65 | — | — | — | 18.62 | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 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 | 18.81 | 19.69 | 17.58 |
| Cash conversion cycle | days | 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 | 19.56 | 22.03 | 20.52 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 36.80 + 15.60 – 18.98
= 33.43
The cash conversion cycle of Tyson Foods Inc has shown fluctuation over the past several quarters. It is a metric that reflects the company's efficiency in managing its working capital and the time it takes to convert its invested resources into cash flows.
In the latest quarter, ending on December 31, 2023, the cash conversion cycle was 33.43 days, indicating that Tyson Foods took approximately 33.43 days to convert its investments in inventory into cash receipts from customers. This implies a slight improvement compared to the previous quarter, suggesting that the company may have managed its working capital more effectively.
Looking at the trend over the past few quarters, there were periods of longer cash conversion cycles, such as in the third quarter of 2022 when it reached 41.39 days. Conversely, there were quarters with shorter cycles, like the first quarter of 2021 when it was 18.57 days.
Overall, fluctuations in the cash conversion cycle can be influenced by various factors such as sales patterns, inventory management, and payment terms with suppliers and customers. Analyzing this metric over time provides insights into Tyson Foods' operational efficiency and effectiveness in managing its cash flows.
Peer comparison
Dec 31, 2023