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Tyson Foods (Tyson Foods) ROE %

: 2.36% (As of Dec. 2023)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Tyson Foods's annualized net income for the quarter that ended in Dec. 2023 was $428 Mil. Tyson Foods's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $18,142 Mil. Therefore, Tyson Foods's annualized ROE % for the quarter that ended in Dec. 2023 was 2.36%.

The historical rank and industry rank for Tyson Foods's ROE % or its related term are showing as below:

TSN' s ROE % Range Over the Past 10 Years
Min: -4.55   Med: 16.05   Max: 25.45
Current: -4.55

During the past 13 years, Tyson Foods's highest ROE % was 25.45%. The lowest was -4.55%. And the median was 16.05%.

TSN's ROE % is ranked worse than
80.43% of 1814 companies
in the Consumer Packaged Goods industry
Industry Median: 6.425 vs TSN: -4.55

Tyson Foods ROE % Historical Data

The historical data trend for Tyson Foods's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tyson Foods Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.80 14.11 18.48 17.30 -3.43

Tyson Foods Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.43 -1.99 -8.74 -9.75 2.36

Competitive Comparison

For the Farm Products subindustry, Tyson Foods's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tyson Foods ROE % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Tyson Foods's ROE % distribution charts can be found below:

* The bar in red indicates where Tyson Foods's ROE % falls into.



Tyson Foods ROE % Calculation

Tyson Foods's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=-648/( (19702+18133)/ 2 )
=-648/18917.5
=-3.43 %

Tyson Foods's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=428/( (18133+18150)/ 2 )
=428/18141.5
=2.36 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Tyson Foods  (NYSE:TSN) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=428/18141.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(428 / 53276)*(53276 / 36498.5)*(36498.5 / 18141.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=0.8 %*1.4597*2.0119
=ROA %*Equity Multiplier
=1.17 %*2.0119
=2.36 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=428/18141.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (428 / 644) * (644 / 924) * (924 / 53276) * (53276 / 36498.5) * (36498.5 / 18141.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.6646 * 0.697 * 1.73 % * 1.4597 * 2.0119
=2.36 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Tyson Foods ROE % Related Terms

Thank you for viewing the detailed overview of Tyson Foods's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tyson Foods (Tyson Foods) Business Description

Address
2200 West Don Tyson Parkway, Springdale, AR, USA, 72762-6999
Tyson Foods is a protein-focused food producer, selling raw chicken, beef, pork, and prepared foods. Chicken and beef are its two largest segments, each comprising about one-third of U.S. sales. Prepared foods constitute roughly 20% of sales and include brands like Tyson, Jimmy Dean, Hillshire Farm, Ball Park, and Sara Lee. However, most of these are in product categories rife with competition where Tyson does not have a massive market share lead. Tyson sells some products overseas, but the international segment accounts for just 5% of total revenue. The company is an active acquirer, with more recent years' purchases focused on international and food-service markets.
Executives
Wes Morris officer: Group President Poultry 2200 W DON TYSON PARKWAY, SPRINGDALE AR 72762
John H Tyson director, officer: Chairman & CEO 2200 DON TYSON PARKWAY, SPRINGDALE AR 72762
Melanie Boulden officer: Grp Pres Prepared Foods & CGO 345 PARK AVENUE, SAN JOSE CA 95110
Kevin M Mcnamara director 2200 DON TYSON PARKWAY, SPRINGDALE AR 72762
Johanna Soderstrom officer: EVP & Chief HR Officer 2200 W DON TYSON PARKWAY, SPRINGDALE AR 72762
Donnie King officer: Grp VP of Poultry & Prep.Foods 2200 DON TYSON PARKWAY, SPRINGDALE AR 72762
Brady J. Stewart officer: Group President Fresh Meats 2200 W. DON TYSON PARKWAY, SPRINGDALE AR 72762
Adam S. Deckinger officer: General Counsel and Secretary 2200 W. DON TYSON PARKWAY, SPRINGDALE AR 72762
Shane Miller officer: Group President Fresh Meats 2200 W DON TYSON PARKWAY, SPRINGDALE AR 72762
Amy Tu officer: EVP & General Counsel 2200 W DON TYSON PARKWAY, SPRINGDALE AR 72762
Noel W White officer: Group VP Fr Meats Op & Comm Sa 2200 W DON TYSON PARKWAY, SPRINGDALE AR 72762
David R. Bray officer: Group President Poultry 2200 W DON TYSON PARKWAY, SPRINGDALE AR 72762
Jason Nichol officer: Chief Customer Officer 2200 W. DON TYSON PARKWAY, SPRINGDALE AR 72762
Christopher Lynn Langholz officer: President International 2200 W. DON TYSON PARKWAY, SPRINGDALE AR 72762
Banister Gaurdie E. Jr. director 2211 H.H. DOW WAY, MIDLAND MI 48674

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