Tyson Foods Inc (TSN)
Quick ratio
| 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 | US$ in thousands | 1,484,000 | 573,000 | 699,000 | 543,000 | 654,000 | 1,031,000 | 1,056,000 | 1,151,000 | 2,956,000 | 2,507,000 | 1,613,000 | 877,000 | 2,406,000 | 1,420,000 | 1,365,000 | 437,000 | 497,000 | 484,000 | 406,000 | 360,000 |
| Short-term investments | US$ in thousands | 15,000 | 15,000 | 7,000 | 7,000 | 2,000 | 1,000 | — | — | — | — | — | — | — | — | — | — | 1,000 | 1,000 | 1,000 | 2,000 |
| Receivables | US$ in thousands | 2,263,000 | 2,476,000 | 2,451,000 | — | 2,295,000 | 2,577,000 | — | — | — | 2,400,000 | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 5,513,000 | 5,597,000 | 4,614,000 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,484,000K
+ $15,000K
+ $2,263,000K)
÷ $6,172,000K
= 0.61
The quick ratio of Tyson Foods Inc has shown fluctuations over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term liabilities.
Looking at the trends, we can see that the quick ratio has ranged from as low as 0.10 to as high as 0.78 over the most recent quarters. A quick ratio of 0.10 in March 2020 indicates a potential liquidity challenge, as the company's current assets may not be sufficient to cover its current liabilities. However, the quick ratio improved significantly to 0.78 in September 2021, suggesting a stronger ability to cover short-term obligations.
It is important for investors and stakeholders to monitor the quick ratio over time to assess Tyson Foods Inc's liquidity position and its ability to manage short-term financial obligations effectively. A sustained improvement in the quick ratio over multiple quarters could indicate enhanced liquidity management and financial stability.
Peer comparison
Dec 31, 2023