Tyson Foods (Tyson Foods) Interest Coverage

: 2.20 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Tyson Foods's Operating Income for the three months ended in Dec. 2023 was $231 Mil. Tyson Foods's Interest Expense for the three months ended in Dec. 2023 was $-105 Mil. Tyson Foods's interest coverage for the quarter that ended in Dec. 2023 was 2.20. The higher the ratio, the stronger the company's financial strength is.

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

TSN' s Interest Coverage Range Over the Past 10 Years
Min: 0.4 Med: 9.38 Max: 12.08
Current: 0.4

TSN's Interest Coverage is ranked worse than
97.09% of 1375 companies
in the Consumer Packaged Goods industry
Industry Median: 8.41 vs TSN: 0.40

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Tyson Foods Interest Coverage Historical Data

The historical data trend for Tyson Foods's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Tyson Foods Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

6.00

6.20

10.27

12.08

1.09

Tyson Foods Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																5.56	-	1.10	-	2.20

Competitive Comparison

For the Farm Products subindustry, Tyson Foods's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Tyson Foods's Interest Coverage falls into.

Tyson Foods Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Tyson Foods's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Tyson Foods's Interest Expense was $-355 Mil. Its Operating Income was $386 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,611 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	386	/	-355
	=	1.09

Tyson Foods's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Tyson Foods's Interest Expense was $-105 Mil. Its Operating Income was $231 Mil. And its Long-Term Debt & Capital Lease Obligation was $8,370 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	231	/	-105
	=	2.20

The higher the ratio, the stronger the company's Financial Strength is.

Tyson Foods (NYSE:TSN) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Tyson Foods Interest Coverage Related Terms

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

Tyson Foods (Tyson Foods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Tyson Foods Inc (NYSE:TSN) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TSN:Mexico TF7A:Germany TF7A:Germany TSNF34:Brazil

Address

2200 West Don Tyson Parkway, Springdale, AR, USA, 72762-6999

Website

https://www.tysonfoods.com

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