Tyson Foods Inc (TSN)

Liquidity ratios

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
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
Quick ratio 0.86 0.86 0.81 0.61 0.47 0.64 0.10 0.58 0.68 0.23 0.25 0.49 0.76 0.26 0.19 0.50 0.34 0.32 0.10 0.09
Cash ratio 0.36 0.44 0.39 0.24 0.09 0.14 0.10 0.13 0.19 0.23 0.25 0.49 0.38 0.26 0.19 0.50 0.34 0.32 0.10 0.09

Tyson Foods Inc's liquidity ratios have shown some fluctuation over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with current assets, has generally been above 1, indicating a healthy liquidity position. However, there was a slight decrease in the current ratio in the most recent quarter compared to the trend seen over the previous quarters.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also varied over the quarters. Despite fluctuations, the quick ratio has generally been below 1, indicating that Tyson Foods may have difficulty meeting its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has shown more stability compared to the current and quick ratios. The cash ratio has generally been low, suggesting that Tyson Foods may not have a significant amount of cash readily available to cover its short-term liabilities. However, the company has been able to maintain a minimum level of cash reserves to meet its obligations.

Overall, Tyson Foods Inc's liquidity ratios reveal that the company has maintained a reasonable level of liquidity over the quarters, with some fluctuations in the current ratio and quick ratio indicating potential changes in the company's liquidity position and ability to meet short-term obligations.

Additional liquidity measure

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
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

The cash conversion cycle of Tyson Foods Inc has shown fluctuations over the past few quarters, indicating variations in the company's efficiency in managing its working capital. 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.

Looking at the historical data, we can see that the cash conversion cycle ranged from 18.57 days to 41.39 days during the period under review. A shorter cash conversion cycle is generally favorable as it indicates that the company is able to convert its resources into cash quickly, improving liquidity.

In analyzing the trend, we observe that in some quarters, such as in Mar 31, 2023, and Jun 30, 2023, the cash conversion cycle was relatively low, indicating efficient working capital management. However, there were periods, such as in Dec 31, 2022, and Sep 30, 2022, where the cycle was longer, suggesting potential challenges in converting assets into cash.

Overall, it is important for Tyson Foods Inc to closely monitor its cash conversion cycle and work towards optimizing it to ensure efficient use of working capital, improve cash flow, and support overall financial performance.