Tyson Foods Inc (TSN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.02 | 2.09 | 2.07 | 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 |
The solvency ratios of Tyson Foods Inc, based on the provided financial data, show a consistent trend in terms of the company's leverage and capital structure.
The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio for Tyson Foods Inc are all consistently reported as 0.00 across the periods indicated. This implies that the company has not reported any significant debt relative to its assets, capital, or equity during the specified periods.
However, the financial leverage ratio, which measures the proportion of total assets that are financed by debt, shows fluctuations over time. The ratio has varied between 1.87 and 2.36, indicating changes in the company's reliance on debt financing to support its operations and growth.
Overall, based on the solvency ratios provided, Tyson Foods Inc appears to have a conservative debt policy, maintaining a low level of debt relative to its assets, capital, and equity. The fluctuations in the financial leverage ratio suggest some variability in the company's capital structure and financing decisions over the periods analyzed.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 4.09 | 1.01 | -0.61 | -1.60 | -1.11 | 2.42 | 6.50 | 9.81 | 12.08 | 14.42 | 13.78 | 12.31 | 10.27 | 7.68 | 6.78 | 6.22 | 6.20 | 5.48 | 5.53 | 5.69 |
Interest coverage is a key financial ratio that measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates that a company is more capable of servicing its debt. Analyzing Tyson Foods Inc's interest coverage ratio over the past few quarters, we observe fluctuations in its performance.
The interest coverage ratio for Tyson Foods Inc has shown volatility, ranging from negative values to double-digit figures. In the most recent quarter ending September 30, 2024, the interest coverage ratio improved significantly to 4.09, indicating that the company's operating income was more than four times its interest expenses, reflecting a positive sign of financial health.
However, prior to the recent improvement, Tyson Foods Inc struggled with negative interest coverage ratios in the quarters ending March 31, 2024, and December 31, 2023, which raised concerns about its ability to meet interest obligations through operating income alone.
On a positive note, Tyson Foods Inc demonstrated strong interest coverage ratios in earlier periods, notably in the quarters ending December 31, 2022, and September 30, 2022, with ratios exceeding 9 and 12, respectively. This indicates a robust ability to cover interest expenses with operating income during those periods.
Overall, continuous monitoring of Tyson Foods Inc's interest coverage ratio is essential to assess its financial stability and ability to manage debt obligations effectively. It is evident that the company has experienced fluctuations in its interest coverage, highlighting the importance of financial management strategies to ensure sustainable financial performance in the long term.