Sysco Corporation (SYY)
Inventory turnover
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 64,236,000 | 62,370,000 | 56,315,600 | 41,941,100 | 42,991,600 |
| Inventory | US$ in thousands | 4,678,000 | 4,480,810 | 4,437,500 | 3,695,220 | 3,095,080 |
| Inventory turnover | 13.73 | 13.92 | 12.69 | 11.35 | 13.89 |
June 30, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $64,236,000K ÷ $4,678,000K
= 13.73
The inventory turnover ratio for Sysco Corporation has shown some fluctuations over the past five years. In particular, there was a notable increase in inventory turnover from 2021 to 2022, followed by a slight decrease in 2023. However, in 2024, the inventory turnover ratio remained relatively stable compared to the previous year.
A high and consistent inventory turnover ratio, as seen in 2023 and 2024, indicates that Sysco Corporation is efficient in managing its inventory levels and converting inventory into sales. This efficiency can result in lower carrying costs and reduced risk of obsolete inventory.
On the other hand, the decrease in inventory turnover in 2022, followed by a subsequent increase in 2023, may suggest some volatility in the company's inventory management practices during those years. It is important for Sysco to monitor and maintain optimal inventory levels to ensure operational efficiency and profitability.
In conclusion, the trend in Sysco Corporation's inventory turnover ratio indicates varying levels of efficiency in managing its inventory over the past five years, emphasizing the importance of consistent inventory control practices for the company's financial performance.
Peer comparison
Jun 30, 2024