Tyson Foods Inc (TSN)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 36,746,000 | 36,251,000 | 36,761,000 | 36,796,000 | 36,678,000 | 36,821,000 | 36,245,000 | 35,898,000 | 36,824,000 | 36,309,000 | 35,663,000 | 34,474,000 | 35,458,000 | 34,456,000 | 34,323,000 | 33,657,000 | 33,564,000 | 32,918,000 | 33,665,000 | 32,305,000 |
| 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 |
| Financial leverage ratio | 2.02 | 2.00 | 1.96 | 1.90 | 1.87 | 1.87 | 1.87 | 1.89 | 2.00 | 2.05 | 2.15 | 2.16 | 2.27 | 2.26 | 2.34 | 2.36 | 2.36 | 2.34 | 2.44 | 2.43 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $36,746,000K ÷ $18,150,000K
= 2.02
The financial leverage ratio of Tyson Foods Inc has fluctuated over the past five years, ranging from 1.87 to 2.44. The ratio indicates the company's level of financial leverage, or the extent to which it is using debt to finance its operations and growth.
A higher financial leverage ratio suggests that Tyson Foods is relying more on debt financing, which can amplify returns on equity when operating income exceeds the cost of debt. However, it also increases financial risk as higher debt levels mean higher interest payments and potential financial distress if earnings decrease.
In the most recent period, the financial leverage ratio was 2.02, which indicates that Tyson Foods is moderately leveraged with a higher reliance on debt financing. The trend over the past quarters shows some fluctuations, but overall, the ratio has been relatively stable, hovering around 2.
Investors and analysts should closely monitor Tyson Foods' financial leverage ratio to assess the company's financial risk and the impact of debt on its overall performance and valuation. Regular evaluation of the ratio in conjunction with other financial metrics can provide insights into the company's capital structure and financial health.
Peer comparison
Dec 31, 2023