Tyson Foods Inc (TSN)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 37,100,000 | 36,251,000 | 36,821,000 | 36,309,000 | 34,456,000 |
| Total stockholders’ equity | US$ in thousands | 18,390,000 | 18,133,000 | 19,702,000 | 17,723,000 | 15,254,000 |
| Financial leverage ratio | 2.02 | 2.00 | 1.87 | 2.05 | 2.26 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $37,100,000K ÷ $18,390,000K
= 2.02
The financial leverage ratio of Tyson Foods Inc has shown some fluctuations over the past five years. In 2024, the ratio stands at 2.02, a slight increase from the previous year's 2.00. Comparing this to 2022, where the ratio was 1.87, there has been an overall upward trend in the leverage ratio. This indicates that the company has been increasing its reliance on debt to finance its operations and growth.
However, it is important to note that the ratio peaked in 2020 at 2.26 before trending downwards. This suggests that Tyson Foods Inc may have taken steps to reduce its leverage in recent years. Overall, a financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure, which can increase financial risk but also potentially enhance returns for shareholders in favorable market conditions. As a result, management should continue to monitor and manage the company's leverage levels effectively to maintain a healthy balance between debt and equity financing.
Peer comparison
Sep 30, 2024