Tyson Foods Inc (TSN)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -603,000 | -395,000 | 834,000 | 2,217,000 | 3,422,000 | 4,410,000 | 5,553,000 | 5,582,000 | 5,146,000 | 4,396,000 | 3,449,000 | 3,160,000 | 2,955,000 | 3,008,000 | 2,654,000 | 2,672,000 | 2,749,000 | 2,770,000 | 2,981,000 | 2,987,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 18,150,000 | 18,133,000 | 18,779,000 | 19,399,000 | 19,635,000 | 19,702,000 | 19,355,000 | 19,014,000 | 18,403,000 | 17,723,000 | 16,561,000 | 15,931,000 | 15,638,000 | 15,254,000 | 14,685,000 | 14,277,000 | 14,235,000 | 14,082,000 | 13,793,000 | 13,280,000 |
| Return on total capital | -3.32% | -2.18% | 4.44% | 11.43% | 17.43% | 22.38% | 28.69% | 29.36% | 27.96% | 24.80% | 20.83% | 19.84% | 18.90% | 19.72% | 18.07% | 18.72% | 19.31% | 19.67% | 21.61% | 22.49% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-603,000K ÷ ($—K + $18,150,000K)
= -3.32%
Tyson Foods Inc's return on total capital has fluctuated over the past years. The ratio indicates the efficiency of the company in generating returns from its capital investments. From Dec 2019 to Mar 2020, the return on total capital steadily increased from 19.31% to 22.49%. However, there was a decrease in the ratio in the following quarters, reaching 17.43% by Dec 2022.
The ratio then experienced a sharp decline to -3.32% by Dec 2023, indicating that the company's capital efficiency deteriorated significantly in the most recent period. Overall, the return on total capital for Tyson Foods Inc has shown volatility, with periods of strong performance followed by declines. Further analysis is needed to understand the factors driving these fluctuations and determine the company's long-term capital efficiency.
Peer comparison
Dec 31, 2023