Tyson Foods Inc (TSN)
Current ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 9,751,000 | 10,572,000 | 9,966,000 | 9,216,000 | 8,722,000 | 8,883,000 | 8,892,000 | 8,953,000 | 9,630,000 | 9,303,000 | 8,997,000 | 10,136,000 | 9,822,000 | 9,208,000 | 8,014,000 | 8,544,000 | 7,598,000 | 7,464,000 | 6,866,000 | 6,946,000 |
| Total current liabilities | US$ in thousands | 4,787,000 | 5,810,000 | 5,633,000 | 6,172,000 | 6,499,000 | 4,948,000 | 5,346,000 | 5,114,000 | 5,313,000 | 4,682,000 | 4,657,000 | 6,034,000 | 6,325,000 | 6,184,000 | 4,612,000 | 4,849,000 | 4,234,000 | 4,273,000 | 4,406,000 | 5,536,000 |
| Current ratio | 2.04 | 1.82 | 1.77 | 1.49 | 1.34 | 1.80 | 1.66 | 1.75 | 1.81 | 1.99 | 1.93 | 1.68 | 1.55 | 1.49 | 1.74 | 1.76 | 1.79 | 1.75 | 1.56 | 1.25 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $9,751,000K ÷ $4,787,000K
= 2.04
The current ratio of Tyson Foods Inc has exhibited some fluctuations over the past few years, ranging from a low of 1.25 to a high of 2.04. In general, the current ratio measures the company's ability to meet its short-term obligations with its current assets. A current ratio above 1 indicates that Tyson Foods Inc has more current assets than current liabilities, which is generally considered favorable.
Looking at the current ratio trend, we can observe some volatility, with fluctuations in different quarters. For example, the ratio was relatively low in Q4 2019 at 1.25, suggesting the company may have had difficulty meeting its short-term obligations at that time. However, the current ratio improved significantly in the following quarters, reaching a peak of 2.04 in Q3 2024, indicating a stronger ability to cover its short-term liabilities with current assets.
It is essential to note that a current ratio that is too high may indicate an inefficient use of assets, as excess current assets may not be fully utilized in generating returns. Conversely, a very low current ratio may signal liquidity issues or an inability to meet short-term obligations promptly.
In conclusion, the current ratio of Tyson Foods Inc has shown variability over the past years, but the recent ratio of 2.04 as of September 30, 2024, reflects a positive trend in the company's liquidity position and its ability to cover short-term liabilities with current assets.
Peer comparison
Sep 30, 2024