Tyson Foods Inc (TSN)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | 18,133,000 | 19,702,000 | 17,723,000 | 15,254,000 | 14,082,000 |
| ROE | -3.57% | 16.43% | 17.19% | 13.51% | 14.06% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-648,000K ÷ $18,133,000K
= -3.57%
Tyson Foods, Inc.'s return on equity (ROE) is a critical financial metric that indicates the company's efficiency in generating profits from the shareholders' equity. The ROE is calculated by dividing net income by average shareholders' equity.
Looking at the trend in Tyson Foods' ROE from 2019 to 2023, a few observations can be made:
1. The ROE has been fluctuating over the past 5 years, ranging from a negative 3.57% in September 2023 to a high of 17.19% in October 2021.
2. The positive ROE in 2021 and 2022 indicates that the company was generating profits more efficiently in those years in comparison to the other periods.
3. The negative ROE in September 2023 suggests that the company's net income may not have been sufficient to cover the shareholders' equity, signaling a potential decline in profitability or a decrease in shareholder value.
4. The declining trend from 17.19% in 2021 to -3.57% in 2023 raises concerns about the company's ability to generate returns for its shareholders.
To gain deeper insights, it is crucial to investigate the factors influencing these fluctuations in ROE. This could include analyzing changes in net income, examining the impact of financial leverage on equity returns, and exploring any shifts in the company's capital structure.
In conclusion, the fluctuating ROE of Tyson Foods, Inc. indicates varying levels of profitability and efficiency in generating returns for shareholders over the past 5 years. Further analysis of the company's financial performance and strategic decisions is necessary to understand the drivers behind these fluctuations and to assess the sustainability of returns in the future.
Peer comparison
Sep 30, 2023