Tyson Foods Inc (TSN)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,751,000 | 8,722,000 | 9,630,000 | 9,822,000 | 7,598,000 |
| Total current liabilities | US$ in thousands | 4,787,000 | 6,499,000 | 5,313,000 | 6,325,000 | 4,234,000 |
| Current ratio | 2.04 | 1.34 | 1.81 | 1.55 | 1.79 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,751,000K ÷ $4,787,000K
= 2.04
Tyson Foods Inc's current ratio has exhibited fluctuations over the past five years. As of September 30, 2024, the current ratio stands at 2.04, signaling an improvement in the company's short-term liquidity position compared to the previous years. This indicates that Tyson Foods has $2.04 in current assets for every $1 of current liabilities, implying a strong capacity to meet its short-term obligations.
The significant increase in the current ratio from 1.34 in 2023 to 2.04 in 2024 suggests that Tyson Foods has enhanced its ability to cover its immediate liabilities using its current assets more effectively. This improvement may be attributed to better working capital management, increased cash reserves, or a reduction in short-term debt.
Although the current ratio has fluctuated over the years, it generally indicates that Tyson Foods has maintained a healthy liquidity position, ensuring it can meet its short-term financial obligations. However, it is important to consider other factors such as industry benchmarks, trends in current assets, and liabilities to obtain a more comprehensive assessment of the company's liquidity position.
Peer comparison
Sep 30, 2024