TS
TSN
Jun 29, 2024
Quarter ended Jun 29, 2024 · FY2024 Q3

Tyson Foods, Inc. stock research

Tyson Foods (TSN) Free Cash Flow — Quarter Ended Jun 29, 2024

Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow improved from a negative value to a positive value, capital expenditure was lower, and free cash flow turned positive with a higher margin.

Free cash flow takeaway

A quick read on the company's cash generation and what it means for investors.

Revenue was higher than both the immediately preceding quarter and the same quarter one year earlier. Operating cash flow improved from a negative value to a positive value, capital expenditure was lower, and free cash flow turned positive with a higher margin.

  • Higher revenue combined with a swing in operating cash flow to positive and a reduction in capital expenditure produced positive free cash flow and a higher free cash flow margin.
  • Compared to the prior quarter, operating cash flow shifted from negative to positive, capital expenditure was slightly lower, and free cash flow turned positive. Versus the year-ago quarter, operating cash flow increased, capital expenditure declined, and free cash flow rose.

FCF snapshot

Quarterly and TTM cash-flow metrics with the minimum valuation context.

TTM free cash flow

$1.0B

Trailing twelve-month free cash flow.

Quarter free cash flow

$533.0M

Free cash flow in the selected fiscal quarter.

Operating cash flow

$796.0M

Cash generated by operations before capital spending.

CapEx

$263.0M

Capital spending and related asset purchases.

FCF margin

4.0%

The share of revenue converted into free cash flow.

Cash flow trend

A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.

PeriodRevenueOperating CFCapExFCFFCF margin
2023-09-30$13.3B$323.0M$375.0M-$52.0M-0.4%
2023-12-30$13.3B$1.3B$354.0M$946.0M7.1%
2024-03-30$13.1B-$123.0M$267.0M-$390.0M-3.0%
2024-06-29$13.4B$796.0M$263.0M$533.0M4.0%

Cash conversion quality

Checks that separate high-quality free cash flow from accounting noise or working-capital timing.

FCF / net income279.1%Shows whether accounting earnings convert into cash.
CapEx / revenue2.0%Lower capital intensity usually supports FCF margin.
Net cashn/aCash and equivalents minus total debt.

Recent events shaping cash flow

Near-term business events that help explain the free cash flow result.

Supportive

Operating Cash Flow Recovery

Operating cash flow turned from negative in the prior quarter to positive, and was higher than the year-ago quarter. Capital expenditure also declined, supporting free cash flow.

Free cash flow margin turned positive, reflecting stronger cash generation.

What the cash flow says

How to interpret the company's free cash flow beyond the headline number.

Higher revenue combined with a swing in operating cash flow to positive and a reduction in capital expenditure produced positive free cash flow and a higher free cash flow margin.

Compared to the prior quarter, operating cash flow shifted from negative to positive, capital expenditure was slightly lower, and free cash flow turned positive. Versus the year-ago quarter, operating cash flow increased, capital expenditure declined, and free cash flow rose.

Monitor whether operating cash flow remains positive in upcoming quarters, as it was the primary driver of the free cash flow improvement.

TSN Free Cash Flow — Quarter Ended Jun 29, 2024