Tyson Foods Inc (TSN)
Operating profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -395,000 | 4,410,000 | 4,396,000 | 3,008,000 | 2,770,000 |
| Revenue | US$ in thousands | 52,881,000 | 53,282,000 | 47,049,000 | 43,185,000 | 42,405,000 |
| Operating profit margin | -0.75% | 8.28% | 9.34% | 6.97% | 6.53% |
September 30, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-395,000K ÷ $52,881,000K
= -0.75%
The operating profit margin of Tyson Foods, Inc. for the past five years shows a fluctuating trend. In fiscal year 2019, the operating profit margin was 6.67%, which increased to 6.97% in 2020 before decreasing to 9.34% in 2021. However, in the subsequent years, there was a notable decline in the operating profit margin, with 8.28% in 2022 and a significant drop to 0.73% in 2023.
The decrease in the operating profit margin from 2021 to 2023 is a cause for concern as it indicates that the company's ability to generate profits from its core operations has deteriorated. Factors such as increasing costs, declining revenues, or inefficiencies in the production process could be contributing to this trend.
Further analysis of the company's cost structure, pricing strategy, and operational efficiencies is necessary to identify the underlying causes of the declining operating profit margin. Additionally, comparing the trend in operating profit margin with industry benchmarks and competitors' performance can provide valuable insights into Tyson Foods, Inc.'s relative performance within the sector.
Management should closely monitor the operating profit margin and take appropriate actions to address the downward trend, such as cost control measures, operational improvements, or strategic pricing initiatives, to ensure the company's long-term profitability and competitiveness in the market.
Peer comparison
Sep 30, 2023