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TSN (Tyson Foods) Altman Z-Score : 2.94 (As of Oct. 31, 2024)


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What is Tyson Foods Altman Z-Score?

The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.

Warning Sign:

Altman Z-score of 2.94 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

Tyson Foods has a Altman Z-Score of 2.94, indicating it is in Grey Zones. This implies that Tyson Foods is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.

The zones of discrimination were as such:

When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.

The historical rank and industry rank for Tyson Foods's Altman Z-Score or its related term are showing as below:

TSN' s Altman Z-Score Range Over the Past 10 Years
Min: 2.66   Med: 3.2   Max: 4.01
Current: 2.94

During the past 13 years, Tyson Foods's highest Altman Z-Score was 4.01. The lowest was 2.66. And the median was 3.20.


Tyson Foods Altman Z-Score Historical Data

The historical data trend for Tyson Foods's Altman Z-Score 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 Altman Z-Score Chart

Tyson Foods Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Altman Z-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.21 2.97 3.43 3.59 2.83

Tyson Foods Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Altman Z-Score 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 3.01 2.83 2.82 2.88 2.92

Competitive Comparison of Tyson Foods's Altman Z-Score

For the Farm Products subindustry, Tyson Foods's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Tyson Foods's Altman Z-Score distribution charts can be found below:

* The bar in red indicates where Tyson Foods's Altman Z-Score falls into.



Tyson Foods Altman Z-Score Calculation

Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

Tyson Foods's Altman Z-Score for today is calculated with this formula:

Z=1.2*X1+1.4*X2+3.3*X3+0.6*X4+1.0*X5
=1.2*0.1262+1.4*0.4953+3.3*0.0134+0.6*1.0675+1.0*1.4071
=2.94

* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.

Trailing Twelve Months (TTM) ended in Jun. 2024:
Total Assets was $37,732 Mil.
Total Current Assets was $10,572 Mil.
Total Current Liabilities was $5,810 Mil.
Retained Earnings was $18,687 Mil.
Pre-Tax Income was 253 + 203 + 161 + -556 = $61 Mil.
Interest Expense was -135 + -111 + -105 + -93 = $-444 Mil.
Revenue was 13353 + 13072 + 13319 + 13348 = $53,092 Mil.
Market Cap (Today) was $20,848 Mil.
Total Liabilities was $19,530 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1=Working Capital/Total Assets
=(Total Current Assets - Total Current Liabilities)/Total Assets
=(10572 - 5810)/37732
=0.1262

X2=Retained Earnings/Total Assets
=18687/37732
=0.4953

X3=Earnings Before Interest and Taxes/Total Assets
=(Pre-Tax Income - Interest Expense)/Total Assets
=(61 - -444)/37732
=0.0134

X4=Market Value Equity/Book Value of Total Liabilities
=Market Cap/Total Liabilities
=20848.060/19530
=1.0675

X5=Revenue/Total Assets
=53092/37732
=1.4071

The zones of discrimination were as such:

Distress Zones - 1.81 < Grey Zones < 2.99 - Safe Zones

Tyson Foods has a Altman Z-Score of 2.94 indicating it is in Grey Zones.

Study by Altman found that companies that are in Distress Zone have more than 80% of chances of bankruptcy in two years.


Tyson Foods  (NYSE:TSN) Altman Z-Score Explanation

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.

X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.

Read more about Altman Z-Score and the original research.


Be Aware

Altman Z-Score does not apply to financial companies.


Tyson Foods Altman Z-Score Related Terms

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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