Tyson Foods Inc (TSN)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 8,722,000 | 9,630,000 | 9,822,000 | 7,598,000 | 6,990,000 |
| Total current liabilities | US$ in thousands | 6,499,000 | 5,313,000 | 6,325,000 | 4,234,000 | 5,513,000 |
| Current ratio | 1.34 | 1.81 | 1.55 | 1.79 | 1.27 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $8,722,000K ÷ $6,499,000K
= 1.34
The current ratio measures a company's ability to meet its short-term obligations using its current assets. A higher current ratio indicates better liquidity and financial health.
Looking at Tyson Foods, Inc.'s current ratio over the past five years, we see fluctuations in this ratio. In 2019, the current ratio was relatively low at 1.30, indicating that the company had a lower level of current assets compared to its current liabilities. This could raise concerns about its ability to meet short-term obligations.
In 2020, the current ratio improved to 1.79, which suggests that Tyson Foods had increased its current assets compared to its short-term liabilities, indicating better liquidity and ability to cover short-term obligations.
By 2021, the current ratio slightly decreased to 1.55, indicating a reduction in liquidity compared to the previous year. However, it is still above 1, suggesting that the company's current assets remained sufficient to cover its current liabilities.
In 2022, there was a significant increase in the current ratio to 1.81, indicating improved liquidity and a stronger ability to meet short-term obligations. This could be attributed to an increase in current assets or a reduction in short-term liabilities.
By the most recent period in 2023, the current ratio decreased to 1.34. While still above 1, indicating that the company's current assets can cover its current liabilities, this decrease may raise concerns about a potential reduction in liquidity compared to the previous year.
In conclusion, Tyson Foods, Inc.'s current ratio has exhibited fluctuations over the past five years, with 2022 showing the strongest liquidity position and 2019 the weakest. The decreasing trend in 2023 should be carefully monitored to ensure the company maintains sufficient liquidity to cover its short-term obligations.
Peer comparison
Sep 30, 2023