Tyson Foods Inc (TSN)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 18,133,000 | 19,702,000 | 17,723,000 | 15,254,000 | 14,082,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $18,133,000K)
= 0.00
The debt-to-capital ratio is an important financial metric used to assess a company's capital structure and leverage. It indicates the proportion of a company's capital that is funded by debt. A lower ratio suggests that a company relies less on debt to finance its operations, while a higher ratio indicates a higher level of debt relative to capital.
For Tyson Foods, Inc., the trend in the debt-to-capital ratio over the past five years shows fluctuations, but with a generally declining trend. In 2019, the ratio was at 0.46, indicating that 46% of the company's capital was funded by debt. Over the subsequent years, there was a consistent decrease in this ratio, signifying a reduction in the reliance on debt financing.
By September 30, 2023, the debt-to-capital ratio had decreased to 0.34, indicating that 34% of the company's capital was funded by debt. This reduction suggests that Tyson Foods has been actively managing its capital structure by reducing its reliance on debt financing.
Overall, the declining trend in the debt-to-capital ratio for Tyson Foods, Inc. reflects a positive shift towards a capital structure with a lower proportion of debt. This trend may indicate improving financial stability and reduced financial risk for the company. It suggests that Tyson Foods has been successful in managing its debt levels and optimizing its capital structure over the years.
Peer comparison
Sep 30, 2023