Tyson Foods Inc (TSN)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,409,000 | -395,000 | 4,410,000 | 4,396,000 | 3,008,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 18,390,000 | 18,133,000 | 19,702,000 | 17,723,000 | 15,254,000 |
| Return on total capital | 7.66% | -2.18% | 22.38% | 24.80% | 19.72% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,409,000K ÷ ($—K + $18,390,000K)
= 7.66%
Tyson Foods Inc's return on total capital has fluctuated over the past five years. In 2024, the company's return on total capital was 7.66%, indicating that for every dollar of total capital employed, the company generated a return of 7.66 cents. This marked a significant improvement from the previous year when the return on total capital was -2.18%, suggesting that the company was able to better utilize its capital resources in 2024.
However, the return on total capital was substantially higher in 2022 at 22.38% and in 2021 at 24.80%. This indicates that Tyson Foods Inc was more efficient in generating returns on its total capital in those years compared to 2024. The company experienced a slight dip in its return on total capital in 2020 at 19.72%.
Overall, the trend in Tyson Foods Inc's return on total capital shows variability, with the company achieving higher returns in some years compared to others. Further analysis would be needed to understand the factors influencing these fluctuations and to assess the company's overall capital efficiency.
Peer comparison
Sep 30, 2024