Sysco Corporation (SYY)

Activity ratios

Short-term

Turnover ratios

	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Inventory turnover	13.14	13.73	13.92	12.69	11.35
Receivables turnover	14.79	14.75	14.97	14.08	13.53
Payables turnover	—	10.21	10.53	9.79	8.59
Working capital turnover	39.65	43.75	36.91	39.60	15.03

The analysis of Sysco Corporation's activity ratios over the period from June 30, 2021, to June 30, 2025, reveals several notable trends and patterns.

Inventory Turnover:
The inventory turnover ratio demonstrates a consistent upward trend, increasing from 11.35 times in 2021 to a peak of 13.92 times in 2023. This indicates an improvement in inventory management, with the company efficiently converting its inventory into sales. Following the peak in 2023, there is a slight decline to 13.73 times in 2024 and further to 13.14 times in 2025, suggesting a potential slight slowdown in inventory turnover efficiency, although the ratio remains significantly higher than the 2021 level.

Receivables Turnover:
Sysco’s receivables turnover ratio exhibits continued growth, rising from 13.53 times in 2021 to 14.97 times in 2023. This suggests an enhancement in collection efficiency and quicker conversion of receivables into cash. The ratio stabilizes somewhat in 2024 at 14.75 times and marginally increases to 14.79 times in 2025, implying sustained efficiency in receivables management with little significant change in recent years.

Payables Turnover:
The payables turnover ratio shows a rising trend from 8.59 times in 2021 to 10.53 times in 2023, indicating an improvement in the company's ability to pay suppliers more frequently and possibly benefit from shorter credit periods or improved cash flow management. However, data for 2025 is unavailable, which limits the ability to assess longer-term trends beyond 2024.

Working Capital Turnover:
The working capital turnover ratio reflects greater variability. It sharply increases from 15.03 in 2021 to 39.60 in 2022, which may suggest that the company became more effective in generating sales relative to its working capital during this period. The ratio then decreases slightly to 36.91 in 2023, increases again to 43.75 in 2024, and then declines to 39.65 in 2025. These fluctuations suggest that while the company has generally maintained high efficiency in using working capital to generate sales, there have been periods of both improvement and slight contraction in this efficiency.

Overall Observations:
The activity ratios for Sysco indicate an overall trend of improving operational efficiency, particularly in inventory and receivables management during the initial years. The slight downturn in inventory turnover after 2023 may reflect inventory level adjustments or supply chain considerations. The ratios related to payables and working capital show continuous improvements up to 2023, with some fluctuations in the subsequent years.

In summary, Sysco’s activity ratios depict a company that has effectively enhanced its operational cycles in the early to mid-2020s, with efficiencies in inventory, receivables, and payables management. The modest declines in certain ratios after 2023 suggest potential adjustments or shifts in operational strategies, warranting ongoing monitoring for future sustainability.

Average number of days

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	27.78	26.58	26.22	28.76	32.16
Days of sales outstanding (DSO)	days	24.68	24.75	24.38	25.92	26.97
Number of days of payables	days	—	35.74	34.66	37.29	42.51

The analysis of Sysco Corporation's activity ratios over the period from June 30, 2021, to June 30, 2025, reveals notable trends in inventory management, receivables collection, and payables payment practices.

Starting with the Days of Inventory on Hand (DOH), there has been a consistent decrease from 32.16 days in 2021 to 26.22 days in 2023, indicating an improvement in inventory turnover. This reduction suggests that the company has become more efficient in managing its inventory levels, leading to quicker inventory turnover and potentially reducing holding costs. The slight uptick to 26.58 days in 2024 and further to 27.78 days in 2025 indicates a minor reversal, possibly reflecting a strategic adjustment or shifts in supply chain dynamics, but overall, the inventory days remain lower than the 2021 level, signifying continued efficiency improvements.

Regarding Days of Sales Outstanding (DSO), there has been a downward trend from 26.97 days in 2021 to 24.38 days in 2023. This decline indicates more prompt collection from customers, which can positively impact cash flow and reduce credit risk. The DSO remains relatively stable from 2023 through 2025, with a marginal increase to approximately 24.68 days in 2025, suggesting sustained efforts in receivables management and consistent collection practices.

The Number of Days of Payables has decreased from 42.51 days in 2021 to 34.66 days in 2023, implying that the company is taking less time to pay its suppliers over this period. This trend could reflect a strategic decision to align payable cycles with operational needs or a response to changes in supplier terms. In 2024, the payable days increase slightly to 35.74 days, indicating a modest extension of payment periods.

Overall, Sysco’s activity ratios demonstrate a pattern of enhanced operational efficiency, with shorter inventory and receivables cycles, suggesting effective inventory management and prompt receivables collection. The slight reduction in payable days indicates tighter management of supplier payments, potentially balancing cash flow optimization with maintaining supplier relationships. These trends collectively point towards a focus on improving working capital management and operational agility over the analyzed period.

Long-term

	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Fixed asset turnover	11.28	12.28	13.52	13.25	10.19
Total asset turnover	3.04	3.16	3.34	3.11	2.40

The analysis of Sysco Corporation's long-term activity ratios over the specified period reveals notable trends in asset utilization efficiency.

Fixed Asset Turnover Ratio:
This ratio measures the company's ability to generate sales from its fixed assets such as property, plant, and equipment. The data indicates an upward trend from 10.19 on June 30, 2021, to a peak of 13.52 on June 30, 2023. This increase suggests that Sysco has been progressively improving the efficiency with which it deploys its fixed assets to generate revenue. However, subsequent figures show a slight decline to 12.28 in 2024 and further to 11.28 in 2025, approaching the 2021 level but still remaining higher than the initial value. This pattern may reflect a period of optimized fixed asset utilization followed by a normalization phase or possible adjustments in capital deployment.

Total Asset Turnover Ratio:
This metric assesses how effectively the company utilizes its total assets to drive sales. From 2.40 in June 2021, the ratio increased significantly to 3.11 in 2022 and further to 3.34 in 2023, indicating a substantial improvement in overall asset efficiency. The subsequent slight decreases to 3.16 in 2024 and 3.04 in 2025 suggest a moderation in this efficiency, potentially due to increased asset base or strategic shifts in asset usage. Nonetheless, the ratios remain above the baseline from 2021, underscoring a generally positive trend in asset utilization efficiency over the period.

Summary:
Overall, Sysco's long-term activity ratios reflect an initial period of marked enhancement in asset efficiency, particularly evident up to mid-2023. The subsequent slight declines may indicate rebalancing or growth in asset base that temporarily impacted efficiency metrics. Despite these fluctuations, both fixed asset and total asset turnover ratios demonstrate improved performance relative to the starting point in 2021, showcasing the company's ability to leverage its assets more effectively in recent years.