Sysco Corporation (SYY)
Fixed asset turnover
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 81,370,000 | 78,844,000 | 76,325,000 | 68,636,100 | 51,297,800 |
| Property, plant and equipment | US$ in thousands | 7,215,000 | 6,420,000 | 5,646,820 | 5,179,720 | 5,035,230 |
| Fixed asset turnover | 11.28 | 12.28 | 13.52 | 13.25 | 10.19 |
June 30, 2025 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $81,370,000K ÷ $7,215,000K
= 11.28
The analysis of Sysco Corporation’s fixed asset turnover ratio over the period from June 30, 2021, through June 30, 2025, reveals noteworthy trends in asset utilization efficiency. The fixed asset turnover ratio measures the company's ability to generate sales from its fixed assets, with higher ratios indicating more efficient use of these assets.
From June 30, 2021, to June 30, 2023, the ratio exhibited a consistent upward trajectory, increasing from 10.19 to 13.52. This upward movement suggests that during this period, Sysco was improving the efficiency with which it utilized its fixed assets to generate sales. Such improvement could be attributable to operational efficiencies, investments in more productive assets, or strategic initiatives aimed at optimizing asset deployment.
However, post-2023, the ratio shows signs of moderation. As of June 30, 2024, the ratio declined to 12.28, and further decreased to 11.28 by June 30, 2025. These declines indicate a reduction in asset utilization efficiency, possibly due to several factors such as increased capital expenditure not immediately translating into higher sales, a strategic shift to hold more fixed assets for future growth, or a slowdown in sales growth relative to fixed assets.
Overall, the trend demonstrates an initial phase of improved fixed asset utilization, followed by a period of stabilization and slight decline. This pattern suggests that while Sysco effectively enhanced its fixed asset efficiency during the earlier years, recent years have seen a normalization or potential challenges in maintaining those efficiencies at previous levels. Continued monitoring of asset management strategies and operational performance will be necessary to fully assess whether this decline reflects a temporary adjustment or a longer-term shift in the company’s operational efficiency.
Peer comparison
Jun 30, 2025