Tyson Foods, Inc. (TSN) has reported a 41.20 percent jump in profit for the year ended Oct. 03, 2015. The company has earned $1,220 million, or $2.95 a share in the year, compared with $864 million, or $2.37 a share for the last year. Revenue during the year grew 10.09 percent to $41,373 million from $37,580 million in the previous year. Gross margin for the year expanded 232 basis points over the previous year to 9.47 percent. Total expenses were 94.76 percent of annual revenues, down from 96.19 percent for the last year. This has led to an improvement of 144 basis points in operating margin to 5.24 percent.
Operating income for the year was $2,169 million, compared with $1,430 million in the previous year.
Operating cash flow improves significantly
Tyson Foods, Inc. has generated cash of $2,570 million from operating activities during the year, up 118.17 percent or $1,392 million, when compared with the last year. The company has spent $270 million cash to meet investing activities during the year as against cash outgo of $8,800 million in the last year.
The company has spent $2,035 million cash to carry out financing activities during the year as against cash inflow of $6,915 million in the last year period.
Cash and cash equivalents stood at $688 million as on Oct. 03, 2015, up 57.08 percent or $250 million from $438 million on Sep. 27, 2014.
Working capital declines
Tyson Foods, Inc. has witnessed a decline in the working capital over the last year. It stood at $1,846 million as at Oct. 03, 2015, down 23.84 percent or $578 million from $2,424 million on Sep. 27, 2014. Current ratio was at 1.52 as on Oct. 03, 2015, down from 1.64 on Sep. 27, 2014.
Cash conversion cycle (CCC) has decreased to 28 days for the year from 32 days for the last year. Days sales outstanding went down to 15 days for the year compared with 16 days for the same period last year.
Days inventory outstanding has decreased to 30 days for the year compared with 33 days for the previous year period. At the same time, days payable outstanding was almost stable at 16 days for the year, when compared with the previous year period.
Debt comes down
Tyson Foods, Inc. has recorded a decline in total debt over the last one year. It stood at $6,725 million as on Oct. 03, 2015, down 17.77 percent or $1,453 million from $8,178 million on Sep. 27, 2014. Total debt was 29.23 percent of total assets as on Oct. 03, 2015, compared with 34.14 percent on Sep. 27, 2014. Debt to equity ratio was at 0.69 as on Oct. 03, 2015, down from 0.92 as on Sep. 27, 2014.
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