Tyson Foods Inc (TSN)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 2.00 | 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 |
Based on the provided data, Tyson Foods Inc has consistently maintained a very low level of debt relative to its assets, capital, and equity over the examined periods, as evidenced by a debt-to-assets, debt-to-capital, and debt-to-equity ratio of 0.00. This suggests that the company operates with a conservative capital structure, relying more on equity financing than debt.
However, it is important to note that the financial leverage ratio has fluctuated over time, ranging from 1.87 to 2.44. The financial leverage ratio measures the proportion of the company's total assets that are financed by debt. The increase in the financial leverage ratio over time indicates that Tyson Foods Inc has been increasing its reliance on debt to fund its operations or investment activities.
Overall, while Tyson Foods Inc has maintained a low debt level in relation to its assets, capital, and equity, the increasing trend in the financial leverage ratio suggests a potential shift towards a more leveraged capital structure in recent periods. This trend underscores the importance of monitoring the company's solvency and leverage positions to ensure long-term financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -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 | 6.00 | 7.00 | 7.58 |
The interest coverage ratio of Tyson Foods Inc has fluctuated over the past few quarters, indicating varying levels of the company's ability to meet its interest obligations.
The interest coverage ratio was negative in the last two quarters of 2023, suggesting that Tyson Foods did not generate enough operating income to cover its interest expenses during that period. This could raise concerns about the company's financial health and its ability to meet its debt obligations.
Prior to the negative ratios, the interest coverage ratio showed an improving trend from the first quarter of 2023 to the second quarter of 2022, reaching a peak of 14.42 in the second quarter of 2022. This indicated that the company's operating income was sufficiently large to cover its interest expenses over that period.
Overall, the interest coverage ratio for Tyson Foods Inc has shown some volatility, with both strong and weak performances in meeting its interest obligations. Investors and stakeholders should carefully monitor these fluctuations to assess the company's financial stability and ability to manage its debt effectively.