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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:
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%.
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.
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.
Tyson Foods Annual Data | |||||||||||||||||||||
Trend | Sep14 | Sep15 | Sep16 | Sep17 | Sep18 | Sep19 | Sep20 | Sep21 | Sep22 | Sep23 | |||||||||||
Gross Margin % | Get a 7-Day Free Trial | 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 | 5.15 | 3.44 | 6.18 | 6.62 | 6.58 |
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.
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.
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.
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.
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 |
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