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TSN (Tyson Foods) Gross Margin % : 6.58% (As of Jun. 2024)


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What is Tyson Foods Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Tyson Foods's Gross Profit for the three months ended in Jun. 2024 was $878 Mil. Tyson Foods's Revenue for the three months ended in Jun. 2024 was $13,353 Mil. Therefore, Tyson Foods's Gross Margin % for the quarter that ended in Jun. 2024 was 6.58%.

Warning Sign:

Tyson Foods Inc gross margin has been in long-term decline. The average rate of decline per year is -11.9%.


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

TSN' s Gross Margin % Range Over the Past 10 Years
Min: 4.98   Med: 12.49   Max: 13.87
Current: 5.7


During the past 13 years, the highest Gross Margin % of Tyson Foods was 13.87%. The lowest was 4.98%. And the median was 12.49%.

TSN's Gross Margin % is ranked worse than
91.27% of 1844 companies
in the Consumer Packaged Goods industry
Industry Median: 25.29 vs TSN: 5.70

Tyson Foods had a gross margin of 6.58% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Tyson Foods was -11.90% per year.


Tyson Foods Gross Margin % Historical Data

The historical data trend for Tyson Foods's Gross Margin % 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 Gross Margin % Chart

Tyson Foods Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.84 12.47 13.87 12.51 4.98

Tyson Foods Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross Margin % Get a 7-Day Free Trial 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 5.15 3.44 6.18 6.62 6.58

Competitive Comparison of Tyson Foods's Gross Margin %

For the Farm Products subindustry, Tyson Foods's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Consumer Packaged Goods Industry

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

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



Tyson Foods Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

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

Gross Margin % (A: Sep. 2023 )=Gross Profit (A: Sep. 2023 ) / Revenue (A: Sep. 2023 )
=2631 / 52881
=(Revenue - Cost of Goods Sold) / Revenue
=(52881 - 50250) / 52881
=4.98 %

Tyson Foods's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=878 / 13353
=(Revenue - Cost of Goods Sold) / Revenue
=(13353 - 12475) / 13353
=6.58 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Tyson Foods  (NYSE:TSN) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Tyson Foods had a gross margin of 6.58% for the quarter that ended in Jun. 2024 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Tyson Foods Gross Margin % Related Terms

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


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 US 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
Noel W White officer: Group VP Fr Meats Op & Comm Sa 2200 W DON TYSON PARKWAY, SPRINGDALE AR 72762
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
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