Tyson Foods Inc (TSN)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 2,631,000 | 6,668,000 | 6,526,000 | 5,384,000 | 5,022,000 |
| Revenue | US$ in thousands | 52,881,000 | 53,282,000 | 47,049,000 | 43,185,000 | 42,405,000 |
| Gross profit margin | 4.98% | 12.51% | 13.87% | 12.47% | 11.84% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $2,631,000K ÷ $52,881,000K
= 4.98%
The gross profit margin is a key financial metric that reveals the percentage of each dollar of revenue that a company retains as gross profit after subtracting the cost of goods sold. A higher gross profit margin indicates greater efficiency in production and pricing, while a lower margin could suggest lower efficiency and profitability.
In the case of Tyson Foods, Inc., the gross profit margin has fluctuated over the past five years. In September 2023, the gross profit margin dropped to 4.98%, marking a significant decrease from the previous year's 12.51%. This decline may be attributed to various factors, such as an increase in the cost of goods sold, pricing pressures, or changes in product mix.
The decline in gross profit margin from 2022 to 2023 is particularly concerning and requires further investigation. It's essential to determine the specific reasons behind this significant decrease and assess whether it is a temporary or ongoing trend.
Comparing the 2023 gross profit margin to previous years, the company's performance seems weaker than in 2021 and 2020 when the gross profit margin was 13.87% and 12.47% respectively. However, it is still better than the 2019 margin of 11.84%.
It's also important to compare Tyson Foods, Inc.'s gross profit margin with industry benchmarks and peer companies to gain a better understanding of its competitive position.
Overall, the decline in Tyson Foods, Inc.'s gross profit margin from 2022 to 2023 raises concerns about the company's cost efficiency and pricing strategy, warranting further analysis and attention from investors and stakeholders.
Peer comparison
Sep 30, 2023