Tyson Foods Inc (TSN)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,436,000 | 448,000 | -243,000 | -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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 18,390,000 | 18,076,000 | 18,089,000 | 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 |
| Return on total capital | 7.81% | 2.48% | -1.34% | -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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,436,000K ÷ ($—K + $18,390,000K)
= 7.81%
Tyson Foods Inc's return on total capital has exhibited fluctuations over the past several quarters. The return on total capital was positive and relatively stable, ranging from 18.90% to 29.36%, between December 2021 and June 2022, indicating efficient utilization of the company's capital to generate profits during that period. However, there was a decline in return on total capital in the subsequent quarters, with negative figures recorded in the first quarter of 2024 and further into negative territory in March 2024.
Most recently, as of September 2024, Tyson Foods Inc's return on total capital rebounded to 7.81%, showing an improvement from the negative figures earlier in the year. This indicates a moderate recovery in the company's ability to generate returns from its total capital employed. It is essential for the company to closely monitor its capital allocation decisions and operational efficiency to sustain or improve its return on total capital in the coming quarters.
Peer comparison
Sep 30, 2024