The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Tyson Foods's quick ratio for the quarter that ended in Dec. 2023 was 0.67.
Tyson Foods has a quick ratio of 0.67. It indicates that the company cannot currently fully pay back its current liabilities.
The historical rank and industry rank for Tyson Foods's Quick Ratio or its related term are showing as below:
TSN'
s Quick Ratio Range Over the Past 10 Years
Min: 0.34 Med: 0.71 Max: 0.95
Current: 0.67
During the past 13 years, Tyson Foods's highest Quick Ratio was 0.95. The lowest was 0.34. And the median was 0.71.
TSN's Quick Ratio is ranked worse than 71.63% of 1900
companies
in the Consumer Packaged Goods industry
Industry Median: 1.025
vs TSN: 0.67
Tyson Foods Quick Ratio Historical Data
The historical data trend for Tyson Foods's Quick Ratio 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
Quick Ratio
0.56
0.88
0.86
0.77
0.52
Tyson Foods Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Quick Ratio
0.66
0.63
0.71
0.52
0.67
Competitive Comparison
For the Farm Products subindustry, Tyson Foods's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio Distribution
For the Consumer Packaged Goods industry and Consumer Defensive sector, Tyson Foods's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Tyson Foods's Quick Ratio falls into.
Tyson Foods Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Tyson Foods's Quick Ratio for the fiscal year that ended in Sep. 2023 is calculated as
* 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.
Tyson Foods (NYSE:TSN) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Tyson Foods Quick Ratio Related Terms
Thank you for viewing the detailed overview of Tyson Foods's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
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.
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