Tyson Foods Inc (TSN)

Quick ratio

Sep 30, 2024 Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020
Cash US$ in thousands 1,717,000 573,000 1,031,000 2,507,000 1,420,000
Short-term investments US$ in thousands 15,000 -35,000 -72,000
Receivables US$ in thousands 2,406,000 2,476,000 2,577,000 2,400,000 1,952,000
Total current liabilities US$ in thousands 4,787,000 6,499,000 5,313,000 6,325,000 4,234,000
Quick ratio 0.86 0.47 0.67 0.76 0.80

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,717,000K + $—K + $2,406,000K) ÷ $4,787,000K
= 0.86

The quick ratio of Tyson Foods Inc has shown some fluctuation over the past five years, ranging from 0.47 to 0.86. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

In 2024, the quick ratio improved to 0.86 compared to the previous year, indicating that Tyson Foods had $0.86 of liquid assets available to cover each dollar of its current liabilities. This suggests an improvement in the company's short-term liquidity position.

However, it is important to note that in 2023, the quick ratio was relatively low at 0.47, indicating that Tyson Foods may have had difficulty meeting its short-term obligations using only its quick assets. The quick ratio then improved in 2024, showing an upward trend.

Overall, while the quick ratio has shown fluctuation, the improving trend in recent years indicates a strengthened liquidity position for Tyson Foods Inc. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its short-term financial obligations effectively.


Peer comparison

Sep 30, 2024

Company name
Symbol
Quick ratio
Tyson Foods Inc
TSN
0.86
Pilgrims Pride Corp
PPC
0.73