Tyson Foods Inc (TSN)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $18,133,000K
= 0.00
The debt-to-equity ratio for Tyson Foods, Inc. has exhibited fluctuations over the past five years. The ratio stood at 0.85 as of September 28, 2019, then decreased to 0.74 as of October 3, 2020, and further declined to 0.53 as of October 2, 2021. However, it experienced an increase to 0.42 as of October 1, 2022, and finally rose to 0.52 as of September 30, 2023.
The debt-to-equity ratio is a measure of a company's financial leverage, indicating the proportion of debt used to finance its assets relative to shareholders' equity. A lower ratio is generally preferable as it suggests lower financial risk and greater solvency. Conversely, a higher ratio may indicate higher financial risk.
In the case of Tyson Foods, Inc., the decreasing trend from 2019 to 2021 suggested a reduction in its reliance on debt for asset financing, indicating potentially improved financial stability and lower risk. However, the subsequent increase in the ratio in 2022 and 2023 may signal a reversal of this trend and a return to a higher level of debt relative to equity.
Further analysis and comparison with industry benchmarks and peer companies would provide a clearer understanding of Tyson Foods' debt management strategy and its implications for financial risk and stability. Additionally, examining the company's debt structure and the purpose of debt financing would provide valuable insights into the implications of the changes in the debt-to-equity ratio over the years.
Peer comparison
Sep 30, 2023