Tyson Foods Inc (TSN)

Liquidity ratios

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
Current ratio 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 1.27 1.30 1.34
Quick ratio 0.61 0.47 0.64 0.10 0.58 0.68 0.23 0.25 0.49 0.78 0.26 0.19 0.50 0.34 0.32 0.10 0.09 0.09 0.07 0.08
Cash ratio 0.24 0.09 0.14 0.10 0.13 0.19 0.23 0.25 0.49 0.40 0.26 0.19 0.50 0.34 0.32 0.10 0.09 0.09 0.07 0.08

The liquidity ratios of Tyson Foods Inc show mixed results over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has fluctuated between 1.34 to 1.99. While the current ratio has generally been above 1, indicating the company's ability to meet its short-term obligations, it has shown some variability over time.

The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also displayed fluctuations ranging from 0.09 to 0.78. The lower quick ratios observed in some quarters suggest that Tyson Foods may have difficulty meeting its immediate liabilities without relying on inventory.

The cash ratio, representing the proportion of current liabilities covered by cash and cash equivalents, has varied between 0.09 to 0.50. A higher cash ratio indicates a stronger ability to cover short-term obligations with cash on hand, which Tyson Foods has demonstrated in certain periods.

Overall, while Tyson Foods Inc generally maintains a current ratio above 1, indicating a healthy liquidity position, the variability in quick and cash ratios suggests a need for close monitoring of the company's ability to meet short-term financial commitments. It may be beneficial for the company to focus on managing its current assets more effectively to ensure a consistently strong liquidity position.

Additional liquidity measure

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
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

The cash conversion cycle of Tyson Foods Inc fluctuated over the past few quarters, indicating variations in the company's management of working capital. The cycle calculates the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. A longer cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers.

Looking at the data provided, the cash conversion cycle ranged from a low of 18.57 days to a high of 41.39 days. A shorter cycle, such as the one observed in March 2021 at 18.57 days, suggests the company efficiently manages its working capital and quickly converts inventory and receivables into cash. Conversely, a longer cycle, like September 2022 at 41.39 days, may indicate potential issues in inventory management or delays in collecting payments from customers.

Overall, Tyson Foods Inc should aim to keep its cash conversion cycle low and stable to ensure efficient operations and maximize cash flow. By monitoring and analyzing this ratio regularly, the company can identify areas for improvement and implement strategies to optimize its working capital management.