Tyson Foods Inc (TSN)
Net profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -648,000 | 3,238,000 | 3,047,000 | 2,061,000 | 1,980,000 |
| Revenue | US$ in thousands | 52,881,000 | 53,282,000 | 47,049,000 | 43,185,000 | 42,405,000 |
| Net profit margin | -1.23% | 6.08% | 6.48% | 4.77% | 4.67% |
September 30, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $-648,000K ÷ $52,881,000K
= -1.23%
Tyson Foods, Inc.'s net profit margin measures the company's efficiency in generating profits from its total revenue. Looking at the trend over the past five years, the net profit margin has fluctuated. In fiscal year 2023 (ended September 30, 2023), the net profit margin was negative at -1.23%, indicating that the company incurred losses in that period.
Comparing this to the previous fiscal year, which ended on October 1, 2022, the net profit margin was 6.08%, showing a significant decline in profitability. This decline may be a cause for concern and warrants further investigation into the factors influencing the company's profitability.
In the fiscal year ended October 2, 2021, the net profit margin was 6.48%, which was slightly higher than the previous year, indicating improved profitability. However, in the fiscal year ended October 3, 2020, there was a slight decrease in the net profit margin to 4.77%, in line with the net profit margin for the fiscal year ended September 28, 2019.
The consistency of the net profit margin at 4.77% over the last two years suggests that the company has been able to maintain a steady level of profitability over this period. However, the decline to a negative margin in the most recent fiscal year raises concerns about the company's ability to generate profits. It also indicates potential issues with cost management, pricing strategies, or other operational inefficiencies.
Further analysis of Tyson Foods, Inc.'s income statement, as well as the examination of the company's cost structure and operating expenses, would be necessary to understand the underlying reasons for the fluctuations in the net profit margin. Additionally, it would be beneficial to compare these findings with industry benchmarks to evaluate the company's performance relative to its peers.
Peer comparison
Sep 30, 2023